A recent development that caused major negative backlash on social media was made by Gaurav Munjal, CEO of edtech startup Unacademy. While speaking during a video meeting Munjal announced that there would be no salary hikes this year for employees and he wore a t-shirt valued at Rs 33k. This came after the company shed around 250 jobs only weeks before.
Announcement Amid Challenges
In a video call with staff members, Munjal disclosed that despite having an above-average year, Unacademy did not meet its growth targets. Consequently, the company will not conduct appraisals this year; second time in succession when some workers will not receive a salary increase.
“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,” Munjal stated in the video. He assured employees of the company’s financial stability.
Social Media Backlash
Although Munjal announced this, his choice of clothing took the spotlight. Twitter and Reddit users were quick to note that during the meeting the CEO wore a Burberry t-shirt, which they found mismatched with news about appraisals being stopped.
The redditors and twitteratis vented their resentment on Munjal arguing that he had no idea what his employees go through. A redditor stated, “It felt extremely inauthentic to me. He seemed like he was trying so hard not to smile. It’s all just a big joke for him.”
Another user said, “What does it mean by ‘he takes full ownership’? Is he now offering extra stock options instead of appraisals? The gas lighting is kinda chill.”
Economic Context
Unacademy along with many other start-ups is grappling with financial challenges amidst the current economic climate. Despite boosting the e-learning market during the pandemic slump of learning institutions and students returning to physical classes caused downscaling, many players in this field have adopted various cost-cutting strategies such as retrenchment and restructuring.
Nevertheless, Munjal believes that Unacademy will grow and be profitable in 2024.
The Broader Implications
The incident raises questions on leadership as well as communication when companies are going through financial hardships. As companies face economic pressures, the decisions and public presentations of their leaders come under increasing scrutiny.
In the digital age, where transparency and authenticity are valued, leaders must be mindful of how their actions and appearances are perceived by employees and the public. The backlash against Munjal serves as a reminder of the delicate balance leaders must strike between maintaining personal style and demonstrating empathy and understanding for their employees’ situations.
As Unacademy moves forward, the company will need to address employee concerns. The incident underscores the importance of sensitive and thoughtful communication, particularly during challenging times. Whether Munjal and Unacademy can navigate these challenges effectively remains to be seen, but the CEO’s recent announcement has certainly sparked a conversation about leadership and corporate responsibility in the modern era.
