As the world is slowly returning back to normal after 2 years of lockdown, numerous companies have been hit hard, especially the edtech companies.
One similar edtech company, Unacademy, which was supported by SoftBank, has cut off its team by 10% which is nearly 350 employees because of the reopening of physical tuition centers, schools, and colleges in India.
Earlier, the CEO and co-founder of Unacademy Gaurav Munjal, declared in an internal email dispatched to employees that the organization would not exercise any further cutoffs.
“Things are getting worse with each passing day. Even though we realised this much earlier and took some stringent measures such as reducing our monthly burns, controlling our operational spends, limiting our marketing budgets and identifying other redundancies within the organisation, it was not enough,” said the Unacademy CEO.
“I am deeply saddened to share that we will have to say goodbye to some of our extremely talented Unacademy employees. These would be across the Unacademy Group from verticals where we have to take a difficult decision either to scale down or shut,” Munjal added.
Unacademy co-founder and chief executive Gaurav Munjal apologized for bringing the decision. He had made a commitment against such an action in an earlier statement.
“I want to apologise to everyone sincerely since we made a commitment of no layoffs in the organisation but the market challenges have forced us to reevaluate our decisions,” CEO added further.
“This decision has not been easy and I take complete responsibility. You have contributed immensely to the success of Unacademy and the team will always be indebted to you. There is no easy way to do this and this is not the kind of separation I would have wanted,” said Munjal.
He added more by saying that the firm will do its best to provide facilities and services to the laid employees. The departing team will receive the below-mentioned services:
1. Severance income equivalent to the notice period and an additional two months.
2. Accelerated 1-year vesting period.
3. Medical Insurance coverage for an additional one year.
4. Dedicated placement and employment assistance.
The company is motivated to help the parting team with all the necessities. The Ceo personally requested the remaining teams to support and help him carry out the transition positively.
The releases came after the SoftBank-backed company reported a two-fold hop in its FY22 closings at Rs 2,848 crore for the year.
Lately, edtech companies such as Byjus and Brainly have also laid off their employees. This move came after the sector fell due to the reopening of educational institutions.
