Edtech platform, Unacademy, has announced another round of layoffs as the company struggles to reach profitability. This time, 12% of its workforce, or approximately 380 employees, are being let go.
The move comes as Unacademy, one of India’s largest online learning platforms, faces stiff competition from other edtech companies, including Byju’s and Vedantu. Unacademy had previously raised significant funding rounds, including $440 million in September 2020, but has yet to turn a profit.
In a statement, Unacademy said that the layoffs were part of a broader restructuring plan aimed at “optimizing costs and improving efficiency.” The company also stated that it would continue to hire in areas critical to its growth, such as product and technology.
The decision to lay off nearly 400 employees has raised concerns among current and former Unacademy employees, who worry about the impact on morale and the company’s ability to retain top talent. In response, Unacademy has assured its remaining staff that it will continue to invest in their development and career growth.
This is not the first time Unacademy has faced layoffs. In April 2020, the company let go of around 60 employees, citing the economic impact of the COVID-19 pandemic. Despite this setback, Unacademy has continued to grow rapidly, expanding its offerings beyond test preparation and into K-12 education and professional development.