No free meals, salary cuts for management, founders: Unacademy sharpens focus on profitability
In an email to employees, edtech unicorn Unacademy said it is cutting all "unnecessary expenses" to focus on "turning profitable as soon as possible".
In an email to employees,said it is slashing unnecessary expenses to focus on turning profitable as soon as possible, especially with the impending initial public offering (IPO), which it plans to do in the next two years.
The edtech unicorn said meals and snacks will not be complimentary anymore across its offices; employees, including CXOs, founders, and educators, will not travel business class on the company dime; management and founders will take a salary cut; privileges like dedicated drivers for CXOs will be removed, and businesses that have failed to find product-market fit like Global Test Prep will be shut down.
The startup emphasised that even though it has over Rs 2,800 crore in the bank, it is not efficient at all, and getting rid of unnecessary expenses is imperative for it to hit profitability.
"We are well capitalised but still we want our businesses to be profitable. And it will take Unacademy Group to a different league," the email, seen by YourStory, read.
Nearly three weeks ago, the edtech platform let go of around 150 personnel, which the startup said was "standard practice" as part of its performance improvement plan.
In April 2022, the Softbank-backed startup laid off 600 employees - nearly 10 percent of its workforce - to curb costs and reduce its cash burn.
Recently, edtech startups have come under pressure with schools and coaching centres opening up again after nearly two years of being shut.
has sacked 624 employees in total, so far, while has axed at least 600 jobs across Toppr and WhiteHat Jr.
Some of the bigger edtech players have outlined the launch of "offline" coaching centres that they believe may help them weather the downturn in the sector.
Edited by Suman Singh