Edtech

Unacademy Restructures, Lays Off 250 Employees Amid Strategic Shift

• ByStartupStory     |    July 2, 2024

Gaurav Munjal-led edtech startup Unacademy has laid off 250 employees, according to sources. This move is part of the company’s ongoing efforts to streamline operations and enhance business efficiency.

Out of the 250 affected employees, 150 were from the sales department, dismissed for not meeting sales targets. The remaining 100 employees were from various other departments.

A spokesperson for Unacademy confirmed the development but did not disclose the number of employees impacted. “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. Consequently, some roles have been impacted. While this transition won’t be easy, we will be supporting all impacted individuals during this transition,” the spokesperson said.

Financial Express was the first to report on the restructuring, stating that approximately 600 employees were affected. The latest restructuring exercise adds to a series of layoffs by Unacademy over the past couple of years. According to Inc42’s layoff tracker, Unacademy has laid off around 2,000 employees since the onset of the funding winter.

In May, sources reported that Unacademy’s medical entrance test preparation platform, PrepLadder, undertook a layoff exercise amid a shift in its sales strategy. Sources revealed that the NEET preparation platform laid off around 145 employees, nearly 25% of its workforce. This was PrepLadder’s third round of layoffs in the past three years.

Unacademy has been seeking to raise funds for over a year but has yet to succeed. Recently, one of Unacademy’s cofounders, Hemesh Singh, stepped down from his executive role and moved to an advisory role. Singh, along with Munjal and Roman Saini, founded Unacademy in 2015. The Bengaluru-based startup boasts a network of 91,000 registered educators (teachers) and over 99 million learners.

Sumit Jain, a partner at Unacademy, is reportedly set to replace Singh on the startup’s board seat.

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