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Edtech major Unacademyhas reportedly laid off 380 employees or 12% of its workforce in another round of job cuts in an effort to increase the profitability of its primary business.

“We have taken every step in the right direction to make our core business profitable, yet it’s not enough. We have to go further, we have to go deeper,” Gaurav Munjal, Co-founder and CEO of Unacademy wrote in an internal memo, according to a report in The Economic Times.

“Unfortunately, this has led me to take another difficult decision. We will be reducing the size of our team by 12% to ensure that we can meet the goals we are chasing in the current realities we are facing,” Munjal added.

YourStory has reached out to Unacademy for a comment. This story will be updated to reflect the company’s response.

This development comes a day after the edtech unicorn spun off its coding platform Codechef, which it acquired in 2020, into an independent business. Codechef was developed as a platform to help programmers enhance their skills and create a community.

Last November, Unacademy laid off 10% of its workforce, or about 350 employees. In January, Unacademy-owned Relevel let go of another 40 employees, or about 20% of its workforce. 

This round of layoffs comes at a time when edtech unicorns are witnessing losses, slowing expansion plans, and trying to burn as little cash as possible amid the funding winter.

A recent report by Moneycontrol noted that Unacademy and BYJU’S-owned Aakash are considering a possible merger. However, BYJU’S and Aakash have denied any such move.

Unacademy clocked a loss of Rs 2,848 crore for FY2022. The startup’s losses have widened by 85% since the previous fiscal year, when it reported a loss of Rs 1,537.4 crore.