SoftBank-backed edtech startup Unacademy has laid off 250 employees as part of a recent restructuring effort aimed at streamlining operations and enhancing business efficiency, sources familiar with the matter have reported. This round of layoffs affected around 100 employees from core functions such as business development and marketing, while the remainder were from the sales department.
Unacademy, which counts Peak XV Partners and General Atlantic among its investors, confirmed the layoffs in a statement: “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.”
This is not the first significant layoff for the company; in March 2023, Unacademy reduced its workforce by 12%, following a similar move in April 2022 when it let go of around 1,000 contractual and full-time employees.
The layoffs come shortly after co-founder Hemesh Singh stepped down as Chief Technology Officer, transitioning to an advisory role. Additionally, Unacademy has been shifting its focus towards expanding its offline presence in the test preparation segment, competing with major players like Byju’s-owned Aakash, Bodhi Tree-backed Allen Career Institute, and GSV Ventures-backed PhysicsWallah.
Unacademy, originally started as a YouTube channel by Gaurav Munjal, Hemesh Singh, and Roman Saini, transitioned to an edtech platform in 2015. Currently, a significant portion of its revenue is derived from its offline business. Last December, Munjal informed employees that the company had Rs 1,800 crore (approximately $216 million) in reserves, providing a cash runway of four years. He also noted that Unacademy had reduced its cash burn by 60% in 2023, with an aim to extend its runway to eight years through further reductions.
For the fiscal year ending in March 2023, Unacademy reported a 41% reduction in losses to Rs 1,678 crore, while revenue increased by 26% to Rs 907 crore during the same period.
