1,000 Unacademy employees laid off in cost-cutting exercise

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An educational start-up, Unacademy, was forced to lay off a thousand employees as it went through a cost-cutting procedure to stay afloat. According to various sources, employees in lines ranging from the accounting section to contract educators and other staff have been expelled from the company in the last month.

Softbank, the main investors in Unacademy, were forced to expel six hundred of their employees from the company. The company based in India’s Silicone Valley, Bangalore, has been pushed into a corner due to low influx of funding, many new entrants in the field of online education such as Byjus and the global environment in the world due to the Russia-Ukraine crisis and rising oil prices.

The startup founded seven years ago in 2015 was able to rise to the top of its industry at a rapid pace and was valued at $3.4 billion after securing funding worth $440 million with a Singaporean venture capital firm. – Temasek.

According to multiple sources, the company has been burning too much cash lately and has now curbed cash outflows to stabilize the business for the time being.

Of the 1,000 people who were fired, around a third of them were educators of various subjects who were on contract with the company. The rest are split into various lines of work under Unacademy, such as sales and business development.

A company representative came out to say that Unacademy encourages and develops a mindset of tough performance and full transparency. The company had done several comprehensive studies and reports and after evaluating the roles of many employees, including contractors and other employees, some of them had to be terminated due to layoff. He went on to say that mass layoffs are quite common for any business that is growing and looking to spend its money in the most efficient way possible.

However, the main problem is that most of the employees, especially the lower level ones and all the contractors, said they had no idea that their employers were considering cost cutting measures and it shocked them. when they were suddenly told to leave the company, to which they had devoted so much time and effort.

One of the employees who was shown the layoff said he worked around 60-80 hours a week and described their workplace as unrewarding and toxic.

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