As per LiveMint‘s report, in a bid to restructure costs, edtech unicorn Unacademy will reportedly shut down its global business, founders and management will take pay cuts and employees will have to let go of complimentary meals and snacks. This information was communicated to employees by founder Gaurav Munjal.
Gunjal, in his mail to employees, said the SoftBank-backed company has ₹2,800 crore in the bank.
In an email with subject ‘Frugality’, Munjal told employees: “Even though we have more than ₹2,800 crore in the bank (as of this morning), we are not efficient at all. We spend crores on travel for employees and educators. Sometimes it’s needed, sometimes it’s not.”
“There are a lot of unnecessary expenses that we do. We must cut all these expenses. We have a strong core business. We must turn profitable asap,” Mujal told employees in internal note.
Munjal, in his note to employees, highlighted that the management and the founders have already taken pay cuts and shut down businesses that are not meeting targets.
“We will be shutting down certain businesses that have failed to find the product market fit (PMF) like the Global Test Prep,” Gunjal said.
The decision to do away with non-core privileges and perks including drivers for CXOs, free lunches for employees was taken keeping the company’s aim to get listed, Munjal stressed.
“We have to do an initial public offering (IPO) in the next two years. And, we have (to) turn cash flow positive. For that, we must embrace frugality as a core value,” Munjal said in his note.
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