Unacademy Layoffs: The Edtech Firm Fires 250 Employees

Unacademy Layoffs: In March 2023, Unacademy experienced its second major round of layoffs within two years, reducing its workforce by 12 per cent

Unacademy Layoffs: Based in Bengaluru, the startup reported a 41 per cent reduction in losses to Rs 1,678 crore in FY23 (Image Source X)

Source : Other

Unacademy Layoffs: Unacademy, an Edtech start-up backed by SoftBank, has reportedly implemented a new round of layoffs affecting 250 employees. Approximately 100 individuals from core departments such as business development and marketing have been affected, while remaining from the sales department, reported The Economic Times, citing sources.

Unacademy, backed by investors including Peak XV Partners and General Atlantic, acknowledged the layoffs, as per the report. “As part of our ongoing efforts to streamline operations and enhance business efficiency, we have recently undergone a restructuring exercise. This was necessary, keeping in mind the company's goals and vision for the year, as we focus all our efforts on sustainable growth and profitability. Consequently, some roles have been impacted,” said the company in a statement.

In March 2023, Unacademy experienced its second major round of layoffs within two years, reducing its workforce by 12 per cent. The company had previously terminated approximately 1,000 contractual and full-time employees in April 2022.

Meanwhile, last month, cofounder Hemesh Singh resigned from his position as chief technology officer and moved into an advisory role.

It was previously reported that after an initial surge during the pandemic, Unacademy experienced a slowdown in its online business. As a result, the company shifted its focus towards expanding its offline presence in the test preparation segment, competing with entities such as Byju’s-owned Aakash, Allen Career Institute backed by Bodhi Tree, and PhysicsWallah.

Founded initially as a YouTube channel by Gaurav Munjal, Hemesh Singh, and Roman Saini, Unacademy transitioned into a comprehensive edtech platform in 2015. Currently, a significant portion of its revenue is generated from its offline operations.

In December last year, Munjal informed employees that the company held reserves amounting to Rs 1,800 crore (approximately $216 million), providing a cash runway of four years. He also mentioned that Unacademy had reduced its cash burn by 60 per cent in 2023 and aimed to extend its financial runway to eight years by further cutting down expenses in 2024.

Based in Bengaluru, the startup reported a 41 per cent reduction in losses to Rs 1,678 crore in FY23, accompanied by a 26 per cent increase in revenue to Rs 907 crore during the same period.