BloomTech, previously Lambda School, cuts half of staff

Share Story on

A little over a year after buzzy coding bootcamp Lambda School rebranded as Bloom Institute of Technology, the venture-backed startup is conducting massive layoffs, according to sources. The workforce reduction, per people familiar with the matter, has impacted half of the company’s staff across content, product, data and engineering teams. The layoff is expected to have impacted around 88 employees, using metrics provided in BloomTech’s 2022 diversity report metrics. 

This is the company’s third round of known layoffs since the COVID-19 pandemic began. During BloomTech’s last big layoff, in April 2021, BloomTech CEO Austin Allred admitted that it’s been difficult to make his for-profit company’s vision of “incentive-aligned education work.” In a now-deleted tweet posted earlier today, Allred quoted a prior statement of gratitude for employees pushing through the work despite being attacked from all sides, adding “even more so today.”

The name change to BloomTech appeared to be part of the company’s attempt to get things back on track. At the time, the startup updated its tuition payment options to introduce an outcomes-based loan. The financing instrument allows students to take a loan with zero dollars upfront, and then get 110% of their tuition refunded, including fees and interest from an approved lender, if they are unable to secure a job in web development or computer science within the next year.

At the time, the move meant that BloomTech was expanding beyond the original vision of scaling income-sharing agreements (ISAs), the controversial financing vehicle that it helped pioneer. ISAs, which are used between 90% to 100% of students within BloomTech’s cohorts, will continue to be offered as an option, with some changes.

Fast forward to today, and the current state of the tech labor market doesn’t make BloomTech’s mission any easier. The widespread layoffs within tech companies have unlocked a massive market of trained professionals looking for their next gig; all potential competition for BloomTech graduates hoping to stand out against ex-Twitter and ex-Stripe employees. Career Karma, a platform that helps connect students to coding bootcamps, cut staff this year while Flockjay pivoted away from its bootcamp pitch in 2021.

Market uncertainty is certainly one factor that impacts outcomes, but BloomTech has also been embroiled within a number of lawsuits over the past few years led by students who claim to have been misled by the institution. BloomTech’s pitch is that it can help students land tech jobs, but questions have arisen about what happens when students get jobs after graduating from BloomTech’s program that are unrelated to their studies there, and whether they still owe the company a share of their resulting income.

These tensions have grown over the years. Most recently, reports one education publication, a student accused BloomTech of intentionally misrepresenting its job placement rates. Last year, leaked documents obtained by Business Insider raised questions about the company inflating its efficacy and hyping up a curriculum that didn’t upskill folks at the level expected.

Allred did not immediately respond to requests for comment.

BloomTech, previously Lambda School, cuts half of staff by Natasha Mascarenhas originally published on TechCrunch



Search By Category

Recent News

You May Also Like

On the eve of World Cancer Day, Global Healthcare Advisor Vijay Dhawangale shares his views on awareness in the fight against cancer

On the eve of World Cancer Day, Global Healthcare Advisor Vijay Dhawangale shares his views on awareness in the fight against cancer

Vijay Dhawangale, a global healthcare advisor, offers his thoughts on raising awareness against cancer Mumbai (Maharashtra) [India], February 3: World Cancer Day is held every year on 4

Chaitali Das presents eco-friendly souvenirs to Manipuri polo players at Kolkata Polo Season 2022

Chaitali Das presents eco-friendly souvenirs to Manipuri polo players at Kolkata Polo Season 2022

Kolkata (West Bengal) [India] February 3: Internationally acclaimed Indian Social Entrepreneur & Philanthropist Chaitali Das receives the memento as a goodwill gesture from Chief of Staff

MK Jewels brings the rich jewel culture of every state in India to one venue

MK Jewels brings the rich jewel culture of every state in India to one venue

MK Jewels New Delhi (India), February 3: MK Jewels proudly celebrates the diverse and rich craftsmanship of India with their “Proudly India” showcase on the

Social Commerce Platform-enabler, Springo joins #SucSEEDFamily

Social Commerce Platform-enabler, Springo joins #SucSEEDFamily

New Delhi (India), February 3: Springo, a community commerce enabler platform aimed at making the journeys of sellers selling on social media fast, efficient & easy

The Beauty Sailor; a premium skin care brand in India

The Beauty Sailor; a premium skin care brand in India

The Beauty Sailor, Premium Skincare and Haircare Brand in India New Delhi (India), February 3: The Beauty Sailor, an exclusive skincare brand in India, is preparing

Restore Your Smile with Dental Implants:  10 Best Dentists Debunks Some Myths about Implants

Restore Your Smile with Dental Implants:  10 Best Dentists Debunks Some Myths about Implants

New Delhi (India), February 2: Dr. Shikha Tripathi, BDS, MDS, Prosthodontist & Implanologist, Owner of My Family Dentist Dental Implant Center Multichain Dental Clinic & Founder