Edtech major Unacademy has carried out another round of job cuts, impacting at least 250 people across multiple verticals, as part of its efforts to achieve profitability, according to people familiar with the matter.
The Bengaluru-based firm did not share the number of employees affected by the workforce reduction but confirmed that it has recently undergone a “restructuring exercise”.
“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. While this transition won’t be easy, we will be supporting all impacted individuals during this transition,” said in a statement to YourStory.
Financial Express, the first to report the restructuring, noted that approximately 600 employees across the technology, marketing, and sales teams were affected.
Like many other edtech companies, Unacademy has implemented layoffs over the past two years in an effort to minimise cash burn amid a funding slowdown.
In March of last year, the Gaurav Munjal-led company laid off 12% of its workforce to boost the profitability of its core business. In November 2022, it laid off 10% of its workforce.
India’s edtech sector, which bloomed during the pandemic, faces a reality check with layoffs, funding woes, and a focus on profitability as companies shift gears towards sustainable growth.
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In December 2023, Munjal claimed that the edtech company had reduced its cash burn by 60%, securing a runway of over four years with its cash reserves. Unacademy nearly halved its losses and increased operating revenue in FY 2022-23 compared to the previous year, benefiting from reduced expenses.
Last month, Unacademy launched a language learning app, adding a new revenue stream.
The Softbank-backed startup has also undergone several top-level changes, including departures, appointments, and promotions.
Most recently, Unacademy’s Co-Founder Hemesh Singh stepped down as Chief Technology Officer to transition to an advisory role, while the company plans to appoint Sumit Jain, a partner at the firm, to its board of directors to fill the seat vacated by Singh.
Unacademy’s leadership, including founders, were expected to take salary cuts in FY24. The company hasn’t reported its FY24 financials yet. It reported a loss of Rs 1,678.1 crore in FY23 down from Rs 2,847.9 crore in FY22. Meanwhile, its operating revenue surged to Rs 907 crore, compared to Rs 719.2 crore in the previous fiscal year.
Founded by Munjal, Singh and Roman Saini in 2015, Unacademy claims to have a network of over 91,000 registered educators and more than 99 million learners, offering education in over 14 Indian languages across 10,000 cities.
Edited by Jyoti Narayan
