Unacademy’s founders, leadership to take salary cuts till April 2024, announces CEO Gaurav Munjal

In a bid to reduce costs and achieve profitability, edtech major Unacademy’s leadership team, including the founders, will take a “permanent salary cut,” its co-founder and CEO Gaurav Munjal said in a message posted on the company’s Slack channel.
 
Munjal wrote, “Unacademy’s leadership including the founder’s will take a permanent salary cut. The salary cut will depend on the current salary of the leaders, their scope and performance. The salary cuts can go up to 25 per cent. These cuts are permanent and will only be revised in April 2024.”
 
This development has come a day after Unacademy announced layoffs.
 
Business Today reported on Thursday that the edtech unicorn is going to cut 12 per cent jobs in a fresh round of layoffs. A note to Unacademy employees written by Munjal read, “We will be reducing the size of our team by 12 per cent to ensure that we can meet the goals we are chasing in the current realities we face.”
 
Additionally, Unacademy reduced its headcount by 1,350 through multiple downsizing rounds in 2022. BT also reported that the edtech start-up canceled appraisals for the FY 2022-23 and promised that employees would be given stock options.
 
Munjal justified the layoffs in his note saying, "Today's reality is a contrast from two years ago where we saw unprecedented growth because of the accelerated adoption of online learning. Today, the global economy is enduring a recession, funding is scarce, and running a profitable business is key. We have to adapt to these changes, and build and operate in a much leaner manner so we can truly create value for our users and shareholders."
 
In FY21-22, Unacademy's losses stood at Rs 2,848 crore, up 85 per cent year-on-year (YoY) from Rs 1,537 crore in FY 2020-21. The revenues stood at Rs 719 crores in FY22. 

BT has reached out to Unacademy for an official comment on the matter. The story will be updated as and when they respond.
 

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