In a strategic move, Unacademy, one of India’s leading edtech platforms, has decided to eliminate the traditional performance improvement plans (PIPs) for underperforming employees. The company’s CEO, Gaurav Munjal, announced the shift, emphasizing a more direct approach to address performance concerns.
Munjal stated, “We are putting a ban on PIP. We will not have PIP in the organization moving forth. If someone is not doing their job well, then give feedback. If it happens repeatedly, then it’s better to part ways.” This decision marks a departure from the conventional method of issuing warnings through PIPs.
The CEO expressed his belief that PIPs often lead to unnecessary delays and don’t contribute positively to the decision-making process. Instead, Unacademy will implement a “Direct Exit with notice period for Non-Performers.” Munjal emphasized the importance of not wasting time for both the non-performer and the company.
A spokesperson from Unacademy clarified the change in a statement to Inc42, saying, “We’ve decided to do away with the PIP process that was part of the notice period in case of (a) negative outcome of the PIP.” The statement highlighted that the new approach allows the company to address performance concerns more directly and make decisions efficiently.
Non-performing employees will now have the opportunity to address their performance issues directly through feedback channels. If problems persist, the company aims for a smooth and respectful transition during the notice period.
This move comes a month after Unacademy appointed Sandhydeep Purri as its new Chief People Officer (CPO). Purri’s role is to cultivate talent and foster a culture of innovation and progress at the startup. The decision also follows a series of senior-level exits in 2023, signaling a period of organizational change.
Notable Senior-Level Exits in 2023:
- Arnab Dutta – Senior Vice President Strategy
- Vivek Sinha – Chief Operating Officer
- Abhyudaya Singh Rana – Chief of Staff, Chief of Compliance Officer
- Subramanian Ramachandran – Chief Financial Officer
- Siddharth Manchanda – General Counsel
Additionally, Unacademy has experienced several rounds of layoffs and a cost-cutting exercise. Despite challenges, CEO Gaurav Munjal claimed a substantial reduction in cash burn by 60% in 2023.
In FY22, Unacademy reported an 85% increase in losses, totaling INR 1,537 Cr. However, its operating revenue witnessed a significant rise, exceeding 80%, reaching INR 719 Cr.
