Edtech unicorn Unacademy has terminated the services of around 600 employees, including its on-roll staff and contractual educators in the past few weeks as per media reports.
The report added that approximately 600 people were asked to leave last week as the Soft Bank-backed edtech giant looks to cut costs amid an impending slowdown in venture funding and tightening of the overall economic environment.
The company confirms to media as reported that that less 600 employees and contractual workers and Educators have been laid off, which forms only 10 percent of the total workforce at Unacademy.
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“As an organisation, we are focused on becoming profitable by the end of Q4 CY2022 in our core business, while investing for growth in our group companies,” an Unacademy spokesperson said.
Out of the 600 employees terminated in the past few weeks, about 300 were allegedly educators on contracts while the rest were in sales, business, and other functions.
“Based on the outcome of several assessments, a small subset of employee, contractor, and educator roles were re-evaluated due to role redundancy and performance, as is common for any organisation of our size and scale. The company has in good faith ensured they receive certain additional benefits and a generous severance,” Co. said.
However, half a dozen employees among the ones who have been terminated claim that they were unaware of the entire exercise and no feedback was given to them about bad ratings or performance, reported The Economic Times.
The employees were allegedly given an hour to accept the company’s offer of two months of severance in a call with the Human Resources (HR) department, it added, saying Unacademy has not helped these employees with any outreach to find new jobs either.