u/michaelnovati replied · · edited
(UPDATED BELOW BASED ON CEO'S EMAIL + ADDED INSIDER PERSPECTIVE)
I watched the video at super fast speed so hopefully I got it all. These are my neutral notes. The questions asked by students are very good by the way, professional but challenging.
\- It sounds like they eliminated the "TA" role that was almost all former alumni who were hired back by the school.
\- They claim that the responsibilities will be spread amongst other people and load will be increased on current employees.
\- It sounds like they are making more "changes" to leadership and "considerings" for internal salaries and compensation, so it sounds like things might not be great overall financially
\- Investing in technology, tools and software to support backend staff. This is off the shelf software they didn't write themselves, but unclear.
\- Asked about the timing, few weeks to plan and decide on, triggered by the job market, placement rates are low, will take time to recover, and wanted to shift. Let people know as soon as possible and give people more time to shift responsibility.
\- What is the software replacing: "resume software" ai feedback to make coaches more efficient
My opinion:
\- The timing is pretty bad, the cohort leads are ripped out mid cohort and "mid week" and the answer for why was not good. Kush said they have to let people know as soon as possible, but they could ramp down people, and set an end date so people have plenty of time to plan their lives. So clearly something happened that they needed to remove people very quickly.
EDIT: Additional updates based on Kush's email to the company
\- There appear to be numerous changes to the program behind the scenes to help place people. He makes a good point that with many people on ISA or deferred payments, they need to place people as the priority, and they decided the priority job placements over instruction.
\- They clarify that they are not in finance distress and that this was a reallocation of resources to more roles (and some tools)
My Opinion:
\- I believe them actually. They aren't in trouble yet, but they will be if those ISAs and deferred payments don't get placed in \~a year or so
\- I think they lowered their upfront price to incentivize people to choose it over an ISA or deferred payment to compensate in case more ISAs don't ever pay out like they projected.
\- I've said this several times, but no matter how hard people try, a bootcamp can only do so much in 12/16 weeks and having 10% of their staff supporting people through something that can't be learned anyways might not be the best use of funds. Helping people FEEL supported probably added some value, but if that doesn't translate to jobs, I can understand their point of view.