Edtech firm Unacademy has laid off as many as 600 employees over the last few weeks as it looks to turn profitable by the end of this year, the company confirmed on April 7. The company noted that this makes up only 10% of its total workforce of 6,000.
The development comes after Economic Times, citing undisclosed sources, reported the edtech giant has laid off 1000 on-roll employees and contractual educatures in this trimming to strengthen its financial situation and reduce the cash burn from each cost centers.
Those impacted include 300 educators on contract and 600 employees from several vertices like sales, business and other functions. Most of these were reportedly part of the content sales and business development teams for the core Unacademy test preparation product.
A spokesperson of Unacademy, in a media statement, noted that the company is looking to build a culture of high performance and the layoffs were an outcome of several assessments.
However, affected employees have reportedly mentioned that they were not aware of any such assessment and no flags were raised about their alleged poor ratings or performance.