Unacademy Announces Fourth Round of Layoffs, Cuts 12% of Workforce: Report

Unacademy, the SoftBank-backed edtech unicorn, has recently announced that it will be cutting 12% of its workforce. The news was first reported by the Economic Times, citing an internal memo sent by CEO Gaurav Munjal. This will mark the fourth round of layoffs by the edtech startup, as it continues to face challenges in its efforts to make its core business profitable.

      People going through layoffs are in wide-ranging positions, most of which are uncomfortable in one way or another (Photo: iStock)

In the memo, Munjal stated, "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. 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."

While the report by Economic Times has been widely circulated, Mint has not independently verified the comments made in the memo.

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In addition to the newly announced cuts, the startup had also laid off over 1,500 employees last year. In November 2022, the company had fired 10% of its workforce or about 350 employees in the third such round of layoffs within a year. Prior to that, in April 2022, the company had let go of around 600 to 800 employees from its sales and marketing team, along with a few contractual staff and educators or tutors. Then, in June 2022, the startup fired 150 employees after a performance improvement plan.

It's worth noting that Unacademy is not alone in facing these challenges. The edtech industry has been booming in recent years, with many startups attracting significant investments from venture capitalists and private equity firms. However, the pandemic has also forced many edtech companies to reevaluate their business models and cut costs, as they face increased competition and changing market dynamics.

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Despite the layoffs, Unacademy remains one of the most well-funded edtech startups in India, having raised over $2 billion in funding to date. The company offers a wide range of online courses and coaching programs, targeting students preparing for competitive exams such as JEE, NEET, and UPSC.

The announcement of the layoffs by Unacademy is a reflection of the ongoing challenges faced by edtech companies in India and globally. While the industry is growing rapidly, companies must continue to adapt to changing market dynamics and find new ways to remain competitive.