Thread regarding Cengage layoffs

Let me be clear. The 6% bonus for 9 month of employment was tied to the fiscal year, not exiting bankruptcy. It just happened to coincide with the company coming out of bankruptcy.

"Wasn’t there a presidents club or some meeting where “anointed ones” opened their hotel room doors and there were big fat checks sitting there in envelopes?"

Yes. The delivery wasn't a check, though. Rather, it was a letter informing us that we were receiving massive raises of 38% or so starting immediately. As you might imagine, this was a shock-and-awe type of moment.

The "awe" part of this equation began immediately after reading the letter. The feeling was one of gratitude and loyalty. "My god, these great leaders are really putting their money where their mouth is!"

The "shock" half of this reaction came a week or so later, when massive numbers of sales people were fired. This was how they were funding this hefty pay raise.

In the end, of course, this entire thing was revealed to be something of a Faustian bargain, as one by one those "anointed ones" found themselves participating in a surprise meeting with HR. Over time, Hansen and his cronies quietly and completely cleared the deck and replaced everyone with less experienced, far less expensive people.

Style over substance seems a bit polite when speaking of this leadership, but it sure isn't inaccurate.

"I don't remember any 9% post-bankruptcy bonus. I remember when Thomson sold us to Cengage they paid bonuses at plan when the sale went through, which was good but at the time we were usually hitting 20% over plan or something."

It happened. This was companywide...not just sales. I was there for 15 years and can count on one hand the number of times we received ANY payout from our bonus plan. You probably don't remember it because it was a slap in the face after taxes. It only stood out to me because of Hansen's ridiculous announcement of a "6% bonus for the previous 9 month." Of course the sycophants lapped it up as it was another example of how much MH and Cengage CARED ABOUT US!

And yes, everyone at the EVP and C-level got monster payouts for getting out of bankruptcy. That's how they managed to recruit the buffoons from Pearson - which was doing pretty well at the time - to a company that was almost out of money. I worked in marketing and all they cared about when they came on board was quick fixes so they could get their bag.

Wasn’t there a presidents club or some meeting where “anointed ones” opened their hotel room doors and there were big fat checks sitting there in envelopes?

I don't remember any 9% post-bankruptcy bonus. I remember when Thomson sold us to Cengage they paid bonuses at plan when the sale went through, which was good but at the time we were usually hitting 20% over plan or something.

I don't think a post-bankruptcy bonus would have been allowed under the rules of bankruptcy. It went from a guaranteed bonus every year up until about 06/07 to a bonus every few years.

I know this for a fact. MH got rich the day Cengage emerged from bankruptcy.

After we came out of bankruptcy we had a decent earnings year mostly because we stopped servicing our debt. MH dramatically and excitedly announced in a video message that as a result of our hard work, all employees would receive a 6% bonus. At the very end of the video, he said we could calculate our bonus by multiplying our 9-month salary x 6%. Why our 9 month salary? Well, we technically had a 9 month fiscal year because we shifted the start of our fiscal year.

He should have just announced a 4% bonus. Who TF knows what their 9 month salary is? Meanwhile, his bonus for the company coming out of bankruptcy by shirking all its debts was likely somewhere in the 400% range.

Style over substance.

Greetings,

Sometimes, style compliments substance. I'm reminded of a photoshoot I once participated in where the agile disruptors that make up the leadership team of an upwardly mobile and industry-changing EdTech concern.

At this photo session, strategically torn jeans, youthful necklines, and a dramatic belt conveyed the leadership team's youthful image and innovative thinking. This dynamic group even wore tennis shoes to the office!

Let me be clear: style and substance can go hand in hand when the best and brightest come together to affect change.

Full stop!

So, at this point, is it safe to say Cengage Unlimited wasn't an unmitigated success?

"know of a first edition competitor that wrecked Cengage product."

We're gonna need you to name names here, hehe...

Funny. I know of a first edition competitor that wrecked Cengage product. Pretty much wiped it off the face of the earth

Right. And the recent outing of fraudulent practices of our most recent investor Apollo. Wasnt it just last year they just celebrating that big influx of cash we got from this horrible private equity? Apollo is being accused of some pretty heinous things. Yeah a while ago but at least Ill never be "I let the wolf in the chicken coup and now he's eaten them all" stupid. SMDH

"Everything else they say they care about, particularly in First Friday or other internal marketing propaganda, is just lip service designed to motivate the masses to keep toiling to serve an end goal that will in no way benefit those masses. It’s (again, here’s that word) performative."

YUP!!

And all the cute chicks have left.

Performative is the key word here.

Some Portfolio Product Managers have tried developing first editions, but there is so little support for the work (and no established process) that the internal roadblocks they face are nearly insurmountable.

The reality is that there is no time for PPMs to do work like this that would actually serve the market’s needs. Particularly now that PPMs spend most of their time dealing with ill-conceived process change spearheaded by Content & Learning Management and the oft-praised, multi award-winning CPI Transition Team 🙄. Most who attempt these types of first edition projects end up burning out and leaving before they are complete. I believe we just lost one recently.

Leadership has shown us what their true priorities are. They are focused on the opportunity to advance their own careers via improving profit margins for our private equity owners. It’s much easier to do via cutting internal costs than it is via building out the infrastructure needed to develop quality products that will generate revenue growth, which is a game you only play if you are in it for the long run. And make no mistake, private equity is playing a short term game.

Everything else they say they care about, particularly in First Friday or other internal marketing propaganda, is just lip service designed to motivate the masses to keep toiling to serve an end goal that will in no way benefit those masses. It’s (again, here’s that word) performative.

It’s truly sad what this company has come to.