Amid a tough funding environment for edtech startups, Unacademy has laid off 250 people across functions, said a source close to the developments.
Of this, 100 are from core functions such as marketing, business and product, while the rest are from sales.
"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," the company said in a statement.
"Consequently, some roles have been impacted. While this transition won’t be easy, we will be supporting all impacted individuals during this transition," it added.
Softbank-backed edtech firm has been conducting several rounds of layoffs over the past one year. As per sources, Unacademy's team strength is down to under 2,000 from more than 6,000 as of April 2022.
The development comes just a month after the firm's co-founder and Chief Technology Officer, Hemesh Singh announced his decision to move from an executive role to an advisory role.
Founded in 2015 by Gaurav Munjal, Roman Saini and Hemesh Singh, Unacademy provides an online learning platform for preparation of various competitive tests.
The company has raised $877 million in funding to date and was last valued at $3.4 billion, when it raised $440 million from Temasek, General Atlantic, and others in August 2021.
The layoffs are part of the firm's efforts to achieve profitability.
In fact, in FY23, Unacademy's losses shrunk 41 percent in as the edtech startup's employee benefit expenses fell nearly 40 percent in a period when the company conducted massive cost-cutting efforts to extend its runway.
Also Read: SoftBank-backed Unacademy’s losses shrink 41% in FY23, revenue growth slows
Unacademy reported a net loss of Rs 1,678.15 crore for FY22 against a net loss of Rs 2,848 crore a year earlier. During the period, the company’s employee benefit expenses fell to Rs 1,281.28 crore from Rs 1,771.64 crore in FY22.
The announcement comes a amid a noticeable slowdown in demand for edtech companies. Several investors have written off on edtech companies as several models, heavily reliant on online delivery, continuing to suffer.
Embattled edtech firm Byju's too announced laying off nearly 500 employees in April this year as part of a business restructuring exercise announced in October 2023,
On the back of a drying-up of the funding pipeline, several firms have started to bring down their aggressive expenditure on advertising and promotions, and employee benefits and even layoffs.
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