In a recent virtual town hall, Unacademy CEO Gaurav Munjal announced that there would be no appraisals for employees this year, sparking a wave of online criticism. The backlash wasn’t just about the disappointing news itself, but the fact that Munjal delivered it while wearing a $400 Burberry T-shirt. The contrast between the luxury apparel and the message of financial restraint struck a nerve with many on social media, leading to widespread criticism and debate.
The Announcement and Its Context
During the town hall, Munjal explained that despite Unacademy’s above-average performance in 2024, the company failed to meet its growth targets. He cited market challenges, headwinds, and declining revenue from offline centers as the primary reasons for the shortfall. As a result, the decision was made to halt appraisals, a move Munjal acknowledged would be disappointing for employees, especially those who had not received appraisals for two years.
“We did not hit our growth goals,” Munjal stated, while reassuring employees that the company’s financial situation had improved with a reduced burn rate and a substantial runway. However, he admitted that the company made a mistake in previously indicating that appraisals would happen this year.
Social Media Backlash: The Power of Perception
The announcement quickly went viral, but not just because of its content. Social media users were quick to notice Munjal’s expensive T-shirt and highlighted the irony of delivering such disappointing news while wearing a luxury item. Many criticized the apparent disconnect between the CEO’s personal spending and the financial sacrifices being asked of employees.
One user commented, “These CEOs won’t lower their own standard of living but stop appraisals for the people running their businesses.” Another suggested that Munjal should consider a pay cut instead, arguing that the money could have been redirected to fund employee appraisals.
A Lesson in Leadership Perception
The incident highlights the delicate balance CEOs must maintain between their personal and professional lives, especially in times of financial austerity. While leaders are entitled to their personal choices, such choices can be perceived as tone-deaf or out of touch, particularly when making decisions that negatively impact their employees. Munjal’s announcement, coupled with his choice of attire, became a case study in how quickly public perception can turn, reminding leaders everywhere of the importance of aligning their messages with their actions.
