Unacademy CEO's $400 T-shirt grabs eyeballs in his no appraisal announcement. Watch

Gaurav Munjal attributed the company's underperformance to market difficulties, headwinds, and declining revenue from offline centres.

Last week, Unacademy CEO Gaurav Munjal announced that there would be no salary appraisals for employees this year. Munjal, appearing at the company's virtual town hall in a $400 Burberry T-shirt, cited the company's failure to meet growth targets as the reason behind the decision. The disparity between his high-end attire and the announcement was widely noted on social media.

In his address, Munjal acknowledged that while 2023 was an average year for Unacademy, 2024 had been slightly better but still below expectations. He noted that despite these challenges, the company's financial burn rate was low, and they had a significant runway, emphasising that there was no survival risk.

Munjal attributed the company's underperformance to market difficulties, headwinds, and declining revenue from offline centres. “It’s been tough, and that’s why I have one bad news that we won’t be able to do any appraisals this year,” Munjal said. He admitted that despite previous assurances about appraisals, the company realised during the process that they could not proceed.

Acknowledging that some employees had not received appraisals for two years, Munjal urged the workforce to consider the broader context, highlighting that Unacademy was still operational while competitors were failing. “We are the ones who are still standing while our competitors are going down one by one,” he stated.

A Reddit user shared a clip from the town hall, pointing out Munjal’s expensive T-shirt, which sparked criticism among users.

Unacademy CEO shares news of no appraisal year while wearing a $400 tshirt
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“These CEOs won't lower their own standard of living but rather stop appraisals for the people who are running their businesses,” one user commented.

Another user wrote, "Why cuts are always from the bottom tier whereas the top tier who take most of the share are left unaffected?"

Another recalled Munjal's justification for using private jets, citing the value of his time. "This is the same guy who used to travel in private jets and said it is justified because his time is just that valuable."