Edtech unicorn Unacademy is reducing the workforce by 20 per cent from its subsidiary Relevel. The decision came after the parent entity planned to pivot its upskilling platform’s core operations to build a professional network NextLevel.
“Relevel’s core team will focus on building NextLevel. Almost 80% of Relevel’s remaining team will be absorbed by other businesses of Unacademy group and we will have to let go of around 20% (around 40 people) of the team because of the lack of availability of roles for them,” Gaurav Munjal, co-founder, and CEO of Unacademy told employees in an internal note on January 10, reported VCCircle.
Impacted staff will be given severance pay, just like the employees, who were sacked in November. “Severance pay equivalent of the notice period and an additional two months, accelerated vesting, medical insurance and placement support will be given to the impacted employees,” said the note.
Those enrolled in programs at Relevel, the job guarantee platform by Unacademy, will not be fired, even as the focus of the team is expected to completely shift towards the upskilling offerings to its test product, NextLevel.
NextLevel is a platform that will allow job seekers to showcase their expertise and relevant skills in a professional network just like LinkedIn.
Before this new layoff announcement, Unacademy fired about 10% of its workforce or about 350 employees in November last year.
The layoff was the result of woes in the edtech sector amid a reopening of schools, weak macroeconomic conditions and a funding winter.