Unacademy focuses on profitability
In an email to employees,said he was cutting wasteful spending to focus on profitability as soon as possible, especially with the impending initial public offering (IPO), which he plans to do within the next two years.
The edtech unicorn said meals and snacks will no longer be free in its offices; employees, including CXOs, Founders and Educators, will not travel business class at company expense; management and founders will take a pay cut; privileges such as dedicated CXO drivers will be removed, and companies that have failed to find a market-ready product like Preparing for global tests will be closed.
The startup pointed out that although it has more than Rs 2,800 crore in the bank, it is not efficient at all, and getting rid of unnecessary expenses is imperative for it to achieve profitability.
“We are well capitalized but we still want our businesses to be profitable. And this will take Unacademy Group into another league,” said the email, seen by Your storyLily.
Nearly three weeks ago, the edtech platform laid off about 150 people, which the startup called “standard practice” as part of its performance improvement plan.
In April 2022, the Softbank-backed startup laid off 600 employees — nearly 10% of its workforce — to cut costs and reduce cash burn.
Recently, edtech startups have come under pressure with schools and coaching centers reopening after nearly two years of closure.
laid off 624 employees in total, so far, while cut at least 600 jobs at Toppr and WhiteHat Jr.
Some of the biggest players in edtech have announced the launch of “offline” coaching centers which they believe could help them weather the downturn in the industry.