Unacademy, SoftBank-backed edtech start-up fired 250 employees in fresh layoffs across the company as per a report by the Economic Times.
These include around 100 people from the core functions like business development and marketing while the rest were from the the sales department, people aware of the developments told ET.
This is reported to be Unacademy's third round of layoff in many years. The company in March 2023 reduced its workforce by 12 per cent, or around 380 people. In April 2022, it fired around 1,000 contractual and full-time employees.
Responding to the layoffs, the company's spokesperson said, "As part of our ongoing efforts to streamline operations and enhance business efficiency, we have recently undergone a restructuring exercise. This was necessary keeping in mind the company's goals and vision for the year, as we focus all our efforts on sustainable growth and profitability."
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"Consequently, some roles have been impacted. While this transition won’t be easy, we will be supporting all impacted individuals during this transition," the spokesperson further added.
Last month, Unacademy co-founder Hemesh Singh abdicated his role as the chief technology officer and shifted to an advisory role.
Unacademy witnessed a downturn in its online business following the Covid pandemic; a result that prompted the edtech to prioritise its expansion into the offline test prep segment, vying for a place with the likes of Byju's-owned Aakash, Bodhi Tree-backed Allen Career Institute and GSV Ventures-backed PhysicsWallah.
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Unacademy, was started as a Youtube Channel by Roman Saini, Gaurav Munjal, and Hemesh Singh before eventually evolving into a edtech platform. Major portion of its revenue come from its offline businesses.
Munjal, CEO of the company, reportedly briefed its employees last December of the company's cash reserves of Rs 1,800 crore, providing a cash runway for four years. He also said that Unacademy had cut its cash burn rate to 60 per cent aiming to extend its runway to eight years in 2024 through further reductions.
Yet to disclose its financial results for FY24, the Bengaluru-based startup's losses reduced to 41 per cent to Rs 1,678 crore in FY23 with revenue rising to 26 per cent to Rs 907 crore during the same period, the report stated.
