The leadership team of edtech unicorn Unacademy, which has undertaken multiple rounds of layoffs amid the funding winter and business slowdown, will take up to 25% pay cuts for the financial year 2023-24 (FY24).
“The leadership of Unacademy, including the founders, will take a permanent salary cut.” The salary cut will be based on the leader’s current salary, scope, and performance,” Gaurav Munjal, cofounder and CEO of Unacademy, stated in an internal memo to employees. The note was sent via the messaging platform Slack by Inc42.
Munjal went on to say that the salary cuts are permanent and can reach 25%. Only in April 2024 will the salaries be revised.
The news comes just one day after Unacademy laid off 12% of its workforce in yet another round of layoffs.
In a Slack message announcing the layoffs, Munjal stated, “We have taken every step in the right direction to make our core business profitable, but it is not enough.” We need to go further, and we need to go deeper.”
“Unfortunately, this has forced me to make yet another difficult choice.” We will reduce the size of our team by 12% to ensure that we can meet the goals we set in the current environment,” he added.
Unacademy is looking to turn profitable and is cutting costs in the face of mounting losses and the ongoing funding winter. It has conducted four rounds of layoffs over the past 12 months and has fired over 1,500 employees starting March 2022.
