Unacademy fired 350 employees in another round of layoffs

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New Delhi: Unacademy is conducting another round of layoffs to reduce costs and make itself financially sound. In line with that, the company is laying off 350 employees representing 10 percent of its total workforce, according to an internal memo sent by Gaurav Munjal, co-founder and CEO of Unacademy Group.

“I am deeply saddened to share that we will have to say goodbye to some of the most talented Unacademy employees,” Mengal said in the letter to employees and reviewed by Business Standard. “This will be across the Unacademy range of sectors where we have to make the difficult decision to either expand or close.”

He said that the departing team members will receive two months’ severance indemnity in addition to the warning period. They will receive a one-year accelerated benefit period, another year of medical insurance coverage, and a job placement and job support.

“I want to sincerely apologize to everyone because we pledged not to lay off workers in the organization, but the challenges of the market forced us to re-evaluate our decisions,” said Mengal. “Financing has slowed down significantly and a significant portion of our core business has gone offline.”

As per the information received by business intelligence platform Tofler, Unacademy, a Bengaluru-based company, recently recorded a net loss of Rs 2,693 crore for the 2021-2022 financial year. This represents an 83% increase over the previous fiscal year. The company claimed to have spent a total of Rs 3,411 crore during the financial year. The company announced that its revenue for the 2021-2022 fiscal year was Rs 718 crore, an increase of 78% over the previous fiscal year.

“We are no strangers to the harsh economic conditions that everyone is experiencing these days,” Mengal said in the new message. “These are very tough times for the tech ecosystem. And things are getting worse with each passing day.”

As a result of the pandemic and a focus on profitability as well as efforts to standardize the industry and cut costs, the company laid off about 1,000 employees in April.



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