New Delhi: As the funding winter hit edtech startups and unicorns in India, Unacademy founders and management are taking pay cuts, and employees will not get complimentary meals and snacks across its offices, the company’s Founder Gaurav Munjal has told employees., reports news agency IANS.Also Read - Over 22K Techies Lose Jobs in US, More Than 12K in Indian Startups
In an internal email, Gaurav Munjal, Company’s Founder said that even though the company has more than Rs 2,800 crore in the bank, “we are not efficient at all”. “We spend crores on travel for employees and educators. Sometimes it’s needed, sometimes it’s not. Also Read - Standard Practice: Unacademy Denies Layoff Reports, Says 2.6% Employees Let Go Due to Poor Performance
The email further read, “There are a lot of unnecessary expenses that we do. We must cut all these expenses. We have a strong core business. We must turn profitable asap.” “We will be shutting down certain businesses that have failed to find the product market fit (PMF) like the Global Test Prep,” he said to the employees. Also Read - This Edtech Startup Lays Off Nearly 150 Full-Time, Contractual Employees | Here’s Why
Last month, Unacademy said that a small fraction of its workforce (2.6 per cent) has been asked to go as part of a performance improvement programme (PIP). Nearly 150 employees (2.6 per cent) from Unacademy’s PrepLadder team were laid off.
In the email, Munjal said that they have to do an initial public offering (IPO) in the next two years. “And, we have (to) turn cash flow positive. For that, we must embrace frugality as a core value,” he added. In the month of April, Unacademy had laid off nearly 600 employees, contractual workers and educators, about 10 per cent of its 6,000-strong workforce across the group.
(With Inputs From IANS)
Unacademy Founders Take Pay Cuts, No Free Meals or Snacks For Employees - India.com
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