Edtech unicorn Unacademy has announced its fourth round of layoffs in the past 12 months, letting go of 380 employees, or 12% of its workforce. The move comes as the company looks to achieve profitability, despite having seen an 80% increase in consolidated revenue in FY22. Unacademy CEO and co-founder Gaurav Munjal said that the company needed to “build and operate in a much leaner manner” in light of economic challenges, funding scarcity, and the need for profitability. Unacademy has let go of a total of 1,900 employees across its group companies over the past year, and has joined other edtech majors like BYJU’S and Vedantu in resorting to layoffs to stay afloat amid funding reductions in the industry.
Edtech sector in India has been facing challenges in the wake of the COVID-19 pandemic and the subsequent reopening of schools and colleges. The shift towards online education during the pandemic led to a surge in demand for edtech platforms, but with the reopening of physical educational institutions, the growth has slowed down.
In addition to this, the edtech sector in India has also been impacted by the reduction in funding. The COVID-19 pandemic has disrupted the global economy, and this has affected the availability of funding for startups in various sectors, including edtech. This has led to many edtech startups, including Unacademy, resorting to layoffs to extend their runway and stay afloat. The ‘Indian Startup Layoff Tracker’ has reported that several major edtech startups in India, including BYJU’S, Vedantu, and Unacademy, have fired more than 8,500 employees since the start of 2022. These layoffs have been aimed at reducing costs and improving the financial health of these companies.