While the wave of layoffs continues to hit multiple industries, Unacademy, a major player in the Indian edtech sector, is not far behind. After announcing the termination of around 250 employees, the company has now rejected appraisals for everyone this year. Unacademy CEO Gaurav Munjal made the announcement last week at the virtual town hall, stating that there will be no salary hikes for employees. While the decision has left many disappointed and worried, Munjal’s choice of outfit for the day is now also facing the internet’s wrath.
Purportedly dressed in a $400 (Rs 33,000 approx.) Burberry T-shirt to announce an appraisal cut for employees, the CEO’s ironical appearance has everyone’s attention. Many took to social media platforms and reacted to his video.
“Unacademy CEO shares news of no appraisal year while wearing a $400 t-shirt,” a Reddit post read, followed by an additional message that explained that he wore the Burberry Black Parker t-shirt with an embroidered logo.
Unacademy CEO shares news of no appraisal year while wearing a $400 tshirt byu/Beneficial-Ad-9123 inStartUpIndia
The post left users divided in the comment section, with many calling out the CEO and his company. A user wrote, “These CEOs won’t lower their own standard of living but rather stop appraisals for the people who are running their businesses,” while another asked, “Why are cuts always from the bottom tier whereas the top tier, who take most of the share, is left unaffected?”
“Just take a paycut! That money could have been used to give appraisals to many employees. The ratio of a CEO’s salary to an average employee’s salary is still too huge,” a comment read.
Unacademy Announces ‘No Appraisals’ For Employees
In his town hall address, Gaurav Munjal shared that the company has not met the growth targets, which is why they will not hold appraisals for the workplace. “I think 2023 was an average year for us. But 2024, if not great, was above average. However, we did not meet our growth goals. The good part is that the burn is extremely low now, and we have a huge runway. And I kept saying that we don’t have a survival risk,” he said.
He also acknowledged that some employees have not received any hikes for two years now, but they need to see the “bigger picture.”
In July this year, the edtech company laid off about 250 employees across various departments, primarily sales. Those close to the matter said that the terminations were done as part of a recent “restructuring” and also based on performances for the year.
