Gaurav Munjal-led edtech startup, Unacademy has laid off around 600 employees, which constitutes 10% of its employee base, in the latest round of business restructuring, sources said. Employees across technology, marketing, and sales teams have been impacted.

The process of identifying surplus employees began on June 15 and ended on June 30, sources told Fe. “As part of our ongoing efforts to streamline operations and enhance business efficiency, we have recently undergone a restructuring exercise. This was necessary keeping in mind the company’s goals and vision for the year, as we focus all our efforts on sustainable growth and profitability. Consequently, some roles have been impacted. While this transition won’t be easy, we will be supporting all impacted individuals during this transition,” a company spokesperson said in a statement.

“We were given an ultimatum to either resign or face termination,” said an employee who was asked to leave.

According to Tracxn, Unacademy had around 3,850 employees as of September last year. This number was around 42% lower than what it was in September 2022.

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In April 2022, Unacademy had laid off around 1,000 employees as part of a massive cost-cutting exercise. In March 2023, it had laid off 350 employees, which was its fourth round of layoffs.

This latest round of layoffs come a little after a month when Unacademy Group’s medical entrance test prep platform, PrepLadder, let go of around 145 employees as part of a change in sales strategy. This was the third round of layoff at PrepLadder in the past three years. Unacademy had acquired PrepLadder in July 2020 for $50 million.

On a consolidated basis, Unacademy has managed to reduce its losses by 40% to Rs 1,678.1 crore in FY23 from Rs 2,847.9 crore a year prior to that. Its operating revenue rose 26% to Rs 907 crore in FY23 from Rs 719 crore in FY22.

Till date Unacademy Group has raised around $800 million in funding across multiple rounds. The company is valued at $3 billion and Peak XV Partners, Tiger Global, Elevation Capital, General Atlantic, and Meta are some of its investors.