In a statement to staff, cofounder and CEO Gaurav Munjal warned employees that the Bengaluru-based unicorn’s leadership including founders will accept these layoffs.
A day after slashing 12% of its personnel, Unacademy on Friday stated the tech firm’s leadership would undergo permanent wage cuts ranging up to 25%.
In a statement to staff, cofounder and CEO Gaurav Munjal warned employees that the Bengaluru-based unicorn’s leadership including founders will accept these layoffs.
“The compensation decrease will depend on the existing salary of the leader, their scope and performance… These cutbacks are permanent and the wages will only be changed in April 2024,” he continued.
The corporation did not react promptly to ET’s request requesting comment on the situation.
On Thursday, Munjal informed staff that Unacademy had made “every step in the correct direction” to make its main business viable, but the efforts had not been enough.
He had just notified the crew about a 12% layoff exercise.
“I have conducted detailed reviews with every leader in the organization to determine the size of the team in line with a sustainable cost structure, the skills necessary for today’s business needs, and the direction each team has to take to work towards our key business goals and achieve profitability,” Munjal wrote.
The message was delivered only a day after the business stated it had hived off CodeChef, an acquisition it acquired in 2020.
SoftBank- and General Atlantic-backed Unacademy is under pressure to cut down on its monthly financial loss.
Last month, the firm suspended appraisals for the financial year ending March 2023 to concentrate on going profitable, amid a broader tightening in financing and a decline in demand for online education.
The tech business has been downsizing its employees across many rounds of job cutbacks for a year now in its quest to become profitable.
It has sacked roughly 1,000 contractual and full-time staff in April 2022. Three months later, Munjal informed colleagues that Unacademy would not lay off further people and would strive to decrease other expenditures.
But, in early November, the corporation cut as many as 350 jobs, hurting around 10% of workers throughout the organization. In January, its Relevel business segment lay off 40 people or 20% of its staff. In November, Munjal announced in a Twitter post that the firm has decreased its cash burn rate from $20 million a month to $7 million a month, with a further drop on the cards.
