Edtech unicorn Unacademy has let go of an additional 2.6 per cent of its workforce, who were put on a performance improvement program according to the company spokesperson. Unacademy has around 6,000 employees across the group, which brings the number of people being let go to 150. In April, the company had axed 600 employees due to role redundancy and non-performance.
Inc42 was the first to report this development. Commenting on the reports of layoffs, a company spokesperson said, “Unacademy has not conducted any layoffs, and we strongly deny the information as it is factually incorrect.”
“Based on the outcome of the recent appraisal, a very small fraction of the workforce (~2.6 per cent) was put on a performance improvement program, as is common for any organisation of our size and scale. The departure of these employees is a result of the PIP, which is a standard practice in all organisations,” she added.
Severance and support
According to sources, these employees have been offered severance and support by the company. Severance benefits offered by Unacademy include a provision to take garden leave for the duration of the notice period, additional payout equivalent to two months' salary, an extension of the existing medical/Insurance coverage till July mid, and assistance in outplacements.
Earlier in May, used-cars retailer Cars24 has also laid off 600 employees, citing performance issues. “This is business as usual... performance-linked exits that happen every year,” a Cars24 spokesperson has said at that time.
Speaking to BusinessLine on the condition of anonymity, a senior human resource professional said, ”Hundreds of people cannot be put on a performance improvement program. The percentage of people being put on PIP is usually very low, maybe around 10-20 people. Mistakes can happen in hiring but it could not happen in hundreds of cases. If such a huge number of people are being put on PIP, the manager should also be held accountable.”