The management of Unacademy, an online learning application, will take a pay cut and the company will also shut its global test preparation business, according to a report.
A note from Unacademy founder Gaurav Munjal said the move is aimed at reducing costs and to maximise profits, The Economic Times reported.
“Even though we have more than Rs2,800 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,” Munjal told his employees.
He stated the founders have already taken a pay cut, and that the top management would follow suit.
In May, Munjal had stated that a “funding winter is here” and the company must change its ways to maintain competitiveness.
“We have to do an initial public offering in the next two years. And, we have [to] turn cash flow positive. For that, we must embrace frugality as a core value,” he said.
