The unicorn in education has stopped the contract with the company’s NEET and JEE educators who have difficulty solving their doubts for six months
In the 2022 year all by itself, Unacademy has fired over 1K+ employees , which includes contingent and full-time employees.
The announcement comes just a few days following the Unacademy co-founder announced that the company was making changes to handle its finances more effectively.
In the wake of reports of a mass firing of 1Kemployees in 2022, the edtech giant Unacademy is now suspending the contract of the NEET and JEE educators who have difficulty solving their problems to six months, as part of its cost-cutting strategy.
In an email obtained from the Moneycontrol, Unacademy terminated the contracts on July 31 without zero notice. The amount of contractors who were affected by the move is unknown.
This past the Sunday (July 31) Both groups of teachers (IIT-JEE as well as NEET) received an email regarding the cancellation of their services for a minimum time of six months. That means that Unacademy won’t use the services of these educators or pay these educators during the six-month period.
The report states that a suspension of six months can mean being cut off from the Unacademy program. For these teachers, Unacademy quoted that it is making important changes that will decrease the requirement for a platform to solve doubts.
Thus we have taken the decision that we will temporarily defer all deliveries relating to doubt-solving solutions, as stated in your agreement with your content provider, the email reads.
A Curious Example of the Unacademy’s Cost-cutting Measures
This move comes just following Unacademy CEO Gaurav Munjal revealed the survival guide of the company open to the public. Munjal has told Unacademy employees that even though the company held $350 millionand more in the bank but it was operating its finances poorly. He said that despite the seriousness of these practices the company was still in a good position.
A few of the initiatives it’s taken to better manage its finances include closing the K-12 division and reducing its US operations in the next few months. The Unacademy management has also taken and removed a number of benefits for employees and perks. The startup also has halted all sponsorship relationships as it is looking to reduce its expenditure across its business.
Unacademy has also joined the coaching model that is offline and thus, reviewed the necessity of service providers. In addition to the current closing, Unacademy had also let go of about 200+ YouTube teachers as well as the 125+ consultants from the PrepLadder team of the edtech unicorn due to problems with performance.
In the meantime, it has fired contractors, Unacademy was recently hired 40 instructors of Allen to their Kota and other centres offline -and the annual salary of these teachers is between 1 Cr to 10 Cr.
In FY21, its costs have risen significantly up to 2,029.9 Cr. The company’s benefits for employees grew by more than six times to 748.4 Cr. The salary and wages account for INR 196.3 cr of expense for employee benefits.
Net loss increased by 5 times, to 1,537.4 C in the FY21. the cost of acquiring customers totaled in the region of INR 5.1 during FY21.
With all the noise the unicorn of edtech has yet to submit their FY22 earnings.