The various stakeholders in the edtech sector point to the economic slowdown and funding winter as major reasons for the massive layoffs that refuse to end. Unacademy, which is backed by Softbank, laid off 10 per cent of its workforce, or approximately 350 people. Gaurav Munjal, the founder of Unacademy, has accepted full responsibility and apologised for his actions in an internal email.
Last week, Unacademy Founder Gaurav Munjal stated that the winter could get worse and that there is a need to stop all unnecessary spending and focus on building great products. Munjal has thus hinted that layoffs are possible.
The edtech company decided to drastically reduce its expenses in July of this year. Munjal of Unacademy mentioned that we have to launch IPO in the next two years and we have turned our cash flow positive.
Previously, Unacademy laid off 600 employees, or 10% of its workforce, due to non-performance and role redundancy in order to become profitable by the end of FY22.
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