2U, the parent company of edX, has announced more layoffs today. The layoffs were announced to staff and it's not known yet whether they will be publicly reported. It appears that many of the cuts will come from edX bootcamps which may be closing by June 2025.
2U filed for bankruptcy earlier this year and the bankruptcy was approved by the U.S. Bankruptcy Court for the Southern District of New York on September 9th. Mudrick Capital Management is currently involved in the turnaround plan.
According to David Halperin, the edtech company may also be the subject of investigations by the Federal Trade Commission and California Attorney General.
2U is the online program manager for a number of elite universities, including Harvard, Yale, MIT, and the University of California. Some of the programs have been the subject of public scorn by consumers who claim they were defrauded. HEI has been investigating 2U since 2019. The Wall Street Journal has also investigated 2U and written several critical stories.
edX promises career support to people who sign up for bootcamps. But what happens when the bootcamps close?
Related links:
FTC and California AG Have Been Investigating Online College Provider 2U (David Halperin)
Workers at 2U expect more layoffs in 2024
2U Collapse Puts Sallie Mae and SLABS Back on the Radar (Glen McGhee)
2U Suspended from NASDAQ. Help for USC and UNC Student Loan Debtors.
2U-edX crash exposes the latest wave of edugrift
