Unacademy lays off 250 employees, CEO says "ignore rumours"
Following BYJU'S, another edtech company, Unacademy, is now seen to be in a precarious situation. This raises questions whether Unacademy is also following the footsteps of BYJU'S.
Online education and related companies that boomed during COVID, have now been gradually thinning out. The edtech sector that at one point represented the rise of startups in the country, has been showing signs of slowdown for some time now.
Following BYJU’S, another edtech company, Unacademy, is now seen to be in a precarious situation. This raises questions whether Unacademy is also following the footsteps of BYJU’S.
Amid merger rumors, edtech startup company Unacademy has once again wielded the sword over employees’ jobs. Unacademy, a company with investments from SoftBank, has shown the way out to 250 employees in its recent round of layoffs.
According to a report in the Economic Times, sources say that those who have been laid off by Unacademy include about 100 employees from core teams like business development and marketing. Additionally, there have been job cuts in the sales department as well.
Unacademy has acknowledged the layoffs of employees, however, they have not disclosed the exact number of employees laid off. The company claims it is striving to enhance its business efficiency and streamline operations and that these layoffs are part of those efforts.
Amid layoffs reports, the company’s founder and CEO Gaurav Munjal posted on his X handle saying, “Our entire focus is on growth and profitability… Given this, this step was necessary. Currently, a lot is being said about Unacademy. However, in terms of growth and profitability, this year will be the best. We are preparing Unacademy for a long race. Do not pay attention to rumors.”
History of Layoffs
Well, this isn’t the first time Unacademy has conducted layoffs. Infact, this is the third round of layoffs. The company has conducted layoffs twice before this. It first laid off employees in April 2022 and then again in March 2023.
In the first round of layoffs, nearly 1,000 Unacademy employees lost their jobs. This included both contractual and full-time employees. In the second round of layoffs, in March 2023, the company laid off 380 people.
According to media reports, since 2022 until now, the company has conducted several rounds of layoffs. As a result, from starting with a workforce of 6,000 in early 2022, the company now has fewer than 3,000 employees.
Unacademy is an online education platform, preparing students for various competitive exams. It also offers courses related to skill building and foundational education. Last month, the company’s co-founder Hemesh Singh, while resigning from the position of Chief Technology Officer said, “I have decided to move from an executive role to an advisory role…”
During COVID, there was a surge in online learning. Many new companies in the edtech sector recorded impressive growth rates during that period. Byju’s rode that wave and became the country’s most valuable startup company. However, now the company is facing difficulties in paying salaries to employees on time.
On the other hand, several companies are struggling with dues have dragged Byju’s to the NCLT. After the end of the COVID era, demand for activities related to offline education have started rising again.
This has posed challenges for new companies focusing on online teaching since 2022. Many edtech companies are now changing their strategies and focusing on offline business.