Unacademy CEO Comments on Startup Failure Post a Day Before Laying Off 250 Employees

Unacademy, the edtech startup led by Gaurav Munjal, has recently laid off 250 employees as part of its latest restructuring efforts. According to a report by Moneycontrol, the company stated that these layoffs are part of their ongoing attempts to streamline operations and improve business efficiency. This move is also in line with Unacademy’s significant cost-cutting measures aimed at achieving profitability. Interestingly, Gaurav Munjal commented on a social media post about startup failure just a day before the layoffs were announced.

The post that Munjal commented on was shared by Bhavin Turakhia, the founder of Zeta, on the social media platform X. Turakhia’s post discussed how “premature founder boredom” can lead to the failure of a startup. He emphasized that the ultimate goal for any startup is to become a “boring” business, meaning it should reach a stage of stable and sustainable operations. Until that point, founders should not lose interest in their companies.

Turakhia also outlined eight key metrics that define a “boring” business. These include sustainable profitability, a growing market share, standardized processes across all functions, and effective leadership, among others.

In his post, Turakhia noted that founders often get attracted to the chaos and uncertainty of running a startup because it releases dopamine, a feel-good chemical in the brain. However, this can lead them to lose focus on their core business prematurely, resulting in distractions, inefficient use of capital, and poor utilization of top talent.

Gaurav Munjal responded to Turakhia’s post by saying, “Hits the right chords.”

Unacademy has previously laid off employees in significant numbers, with 350 employees let go in March 2023 and around 1,000 employees in April 2022.

Regarding the recent layoffs, an Unacademy spokesperson told Moneycontrol, “As part of our ongoing efforts to streamline operations and enhance business efficiency, we have recently undergone a restructuring exercise. This was necessary keeping in mind the company’s goals and vision for the year, as we focus all our efforts on sustainable growth and profitability.”

Many edtech startups are currently facing a slowdown in growth and revenue after experiencing a significant boom during the pandemic, when online learning became essential due to lockdowns.