Unacademy makes the third wave of layoffs, shedding 380 employees

The latest round of layoffs at Indian edtech firm Unacademy would result in 12% of its workers being let go. This translates into 380 layoffs, bringing the company's headcount below 3,000. This action follows Unacademy's firing of 350 workers in November 2022 and 600 workers in April 2022. The layoffs were caused, according to Unacademy CEO Gaurav Munjal, by a shortage of finance and pressure to make a profit.

Munjal stated in a letter to the staff, "The situation now contrasts with that of two years ago when we saw unheard-of growth as a result of the quick uptake of online education. With today's financial crisis, where money is in short supply, operating a profitable firm is essential. To create value for our users and shareholders, we must adapt to these changes and construct and operate much more leanly."

Unacademy has been making efforts to reduce expenses and increase profitability. Munjal informed his staff through email in July 2022 that the business needs to reduce wasteful spending to become profitable. Top management and the startup's founders both had their salaries reduced. Also, Unacademy ceased providing staff with free meals and refreshments at its headquarters as well as business class flights.