The management of Unacademy, an e-learning app, will take a pay cut and the company will also close its global test prep business, according to a report.
A note from Unacademy founder Gaurav Munjal said the move was aimed at reducing costs and maximizing profits, The Economic Times reported.
“Even though we have over Rs2,800 crore in the bank [as of this morning], we are not efficient at all. We spend millions of dollars on travel for employees and educators. Sometimes it’s necessary, sometimes not. There are a lot of unnecessary expenses that we do. We must cut all these expenses. We have a strong core business. We need to become profitable as soon as possible,” Munjal told his employees.
He said the founders have already taken a pay cut and senior management will follow suit.
In May, Munjal said a “funding winter has arrived” and the company needs to change its methods to maintain its competitiveness.
“We have to do an IPO in the next two years. And we have [to] make cash flow positive. For that, we must embrace frugality as a core value,” he said.
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