Unacademy has announced that the company will slash 12% of its overall workforce in a fresh round of layoffs. Unacademy CEO Gaurav Munjal has revealed this information in an internal memo sent to employees. He added that this is a step in the right direction to make the business profitable. The main purpose of the decision is to meet the ultimate goals and purpose.
According to Unacademy, the affected employees will be paid severance package equivalent to the notice period and an additional month’s pay. Moreover, the medical insurance will be valued till September and outplacement support will also be provided. The employees who have worked for over one year will be eligible to receive accelerated vesting of employee stock options. We don’t have any idea s to how many employees and divisions were affected.
In an interesting development, Unacademy shelved off CodeChef, which was acquired with 30% stake in 2020. Going forward, the e-learning company will not invest in COdeChef, which is a competitive platform for students and professional programmers. The coding platform will continue to operate as an independent company. The future is uncertain for CodeChef because the company will have cash crunch unless an investor backs from outside.
The recent round of Unacademy layoffs is based on intense pressure from SoftBank and General Atlantic. The company has not been doing well for the past one year. According to analysts, the slash in the demand for online learning is the main problem. Students are particularly not comfortable with learning for competitive exams online post covid because of lack of support from qualified teachers.
The main issue is that students will not get direct attention from teachers for doubts clearance. They prefer printed study materials instead of videos. Moreover, educational content is available in plenty on YouTube. Unacademy will continue to slash the workforce based on market trends. It will be difficult for employees to guess the situation that will happen tomorrow.
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