Thread regarding Cengage layoffs

Prediction - Upcoming Quarterly Report

Greetings,

I was reviewing the previous quarterly report and presentation, and Cengage has made some smart moves that will stabilize the company.

The focus remains steadfast on the implementation of the new resource model, a strategy that holds immense potential, particularly with the significant expansion of offshore labor.

Also, streamlining technology makes sense. Most professors want Canvas anyway. Cengage's greatest asset has always been its content, but the industry has shifted with the emergence and refinement of OER. This has been discussed here before, but it would seem to me that Cengage's main strength is setting up courses and justifying institutions' historically large technology budgets.

The company has begun to generate small profits, rebuild cash reserves, and pay off debt. Streamlining the company by scaling resources stateside down will no doubt continue.

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| 1501 views | | 5 replies (last April 22, 2024) | Reply
Post ID: @OP+1s86kno6

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@2naa+1s86kno6

There's a reason why "strip and flip" is the private equity motto. They want to get in and out as quickly as possible, and the easiest way to cut costs is to cut heads. Setting a company up for long term success doesn't help their bottom line. The process seems to have accelerated ever since the new round of private equity investment.

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Post ID: @2wuo+1s86kno6

"It won’t be long before Cengage’s US workforce consists of 4 McKinsey consultants."

Nah. I think 2 consultants will suffice. MH needs a new belt.

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Post ID: @2uto+1s86kno6

It’s sad that what has been a differentiator for Cengage is continuing to be outsourced-Support-internal/external, and Content has gone down hill quickly with lots of mistakes and errors and just whole chapters being missing and uploaded.

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Post ID: @2naa+1s86kno6

Greetings,

My comments on the increased reliance on offshore resources and the cost savings realized come directly from the investor relation documents.

It is not meant to alarm anyone.

Full Stop!

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Post ID: @1qst+1s86kno6

It won’t be long before Cengage’s US workforce consists of 4 McKinsey consultants.

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Post ID: @1xtn+1s86kno6

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