SoftBank-backed Unacademy lays off another 150 employees, Click here for more details!

SoftBank-backed Unacademy lays off 600 employees in a cost-cutting drive. According to the sources, Edtech unicorn Unacademy has laid off roughly 600 employees, or nearly 10% of its workforce, in a move that is perceived as a focus on profitability as well as consolidation and cost-cutting in the field during the pandemic

According to Inc42’s Indian Startup Layoff Tracker, eight ed-tech startups have laid off 3,079 employees so far in 2022. According to a source familiar with the situation, the dismissed individuals made up around 2.6 percent of Unacademy’s employment.

They were from the company’s PrepLadder team. According to the source, a few members of the sales team were also asked to leave.

Unacademy, India’s second most valuable edtech business after Byju’s, paid $50 million for PrepLadder in July 2020. PrepLadder is an online portal that provides course materials and sample tests for medical admission exams

According to Inc42, 150 employees from PrepLadder’s sales and operations departments were asked to go and were given a two-month severance package as well as medical insurance.

Unacademy let off roughly 600 people, or 10% of its workforce, early this year to reduce the company’s escalating cash burn, according to Moneycontrol.

To establish a runway for the near term, edtech companies are lowering advertising and marketing costs, consolidating verticals, and mass layoffs, according to Moneycontrol. In 2022, edtech companies are expected to lay off over 4,000 people, according to Moneycontrol forecasts.