Unacademy layoffs

Unacademy Streamlines Operations, Lays Off 250 Employees

Overview

In response to a challenging funding environment for edtech startups, Unacademy has laid off 250 employees across various functions, including product, marketing, and sales. Of the affected employees, 100 are from core functions such as marketing, business, and product, while the remaining 150 are from sales.

Restructuring for Efficiency

“As part of our ongoing efforts to streamline operations and enhance business efficiency, we have recently undergone a restructuring exercise,” the company stated. “This was necessary to align with the company’s goals and vision for the year, focusing 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 period.” Unacademy layoffs

Multiple Layoffs Over the Past Year

The Softbank-backed edtech firm has conducted several rounds of layoffs over the past year. Sources indicate that Unacademy’s team strength has reduced to under 2,000 from more than 6,000 as of April 2022. Unacademy layoffs

Leadership Changes

The development comes just a month after the firm’s co-founder and Chief Technology Officer, Hemesh Singh, announced his transition from an executive role to an advisory role.

Company Background

Founded in 2015 by Gaurav Munjal, Roman Saini, and Hemesh Singh, Unacademy provides an online learning platform for various competitive exams. The company has raised $877 million in funding to date and was last valued at $3.4 billion after raising $440 million from Temasek, General Atlantic, and others in August 2021. Unacademy layoffs

Financial Performance

The layoffs are part of the firm’s efforts to achieve profitability. In FY23, Unacademy’s losses shrank by 41% as employee benefit expenses fell nearly 40% due to massive cost-cutting efforts. The company reported a net loss of Rs 1,678.15 crore for FY22, down from a net loss of Rs 2,848 crore the previous year. During this period, employee benefit expenses decreased from Rs 1,771.64 crore in FY22 to Rs 1,281.28 crore. Unacademy layoffs

Industry Context

The announcement comes amid a noticeable slowdown in demand for edtech companies. Several investors have reduced their interest in edtech companies heavily reliant on online delivery models. Embattled edtech firm Byju’s also announced laying off nearly 500 employees in April this year as part of a business restructuring exercise announced in October 2023. Unacademy layoffs

Strategic Cost-Cutting

In response to the drying-up of the funding pipeline, several firms, including Unacademy, have started to reduce aggressive expenditure on advertising, promotions, and employee benefits, leading to layoffs.

Conclusion

Unacademy’s recent layoffs reflect the broader challenges facing the edtech sector amid a tough funding environment and shifting market dynamics. The company’s strategic restructuring aims to streamline operations and achieve long-term sustainability. Despite these challenges, Unacademy remains committed to its vision of providing quality education and preparing for competitive exams. As the company navigates these changes, its ability to adapt and innovate will be crucial in maintaining its position in the edtech market. Investors and stakeholders will be closely watching how Unacademy capitalizes on its restructuring efforts and positions itself for future growth in a rapidly evolving industry. Unacademy layoffs.