Unacademy pay cuts: Unacademy founders and management agree to pay cuts; shut down global exam preparation business

Unacademy founder Gaurav Munjal told employees in an internal memo reviewed by ETtech on Monday, saying the firm’s founders and senior management will accept pay cuts and the company will also close its global test preparation business.

This is aimed at significantly reducing costs and boosting profitability, even though the SoftBank-backed company has Rs 2,800 crore in the bank, Munjal said in a note.

Even though we have over Rs 2800 crores in the bank (as of this morning), we are not efficient at all. We spend crores on staff and faculty travel. Sometimes it’s needed, sometimes not. There are many unnecessary expenses that we make. We must cut all these costs. We have a strong core business. We need to become profitable as soon as possible,” Munjal told his employees.

According to him, the founders have already cut salaries, and the same will be done for its top management. “We will be closing some businesses that have not been able to find a market fit product (PMF), such as Global Test Prep,” he said.

This is Munjal’s second note to his team in months.
In May, he said the funding winter had arrived. and the company must change its ways.

“We should have an initial public offering (IPO) in the next two years. And we must (to) make the cash flow positive. To do this, we must accept frugality as a core value,” Munjal added in his latest note.

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