2U/edX Implements Another Round of Layoffs Amid Ongoing Financial Struggles
Online education company 2U implements fifth round of layoffs since its disastrous $800 million acquisition of edX in 2021.
According to recent LinkedIn posts from affected employees, 2U/edX has implemented another round of layoffs. This continues a pattern of workforce reductions that began in 2022, following 2U’s $800 million acquisition of edX in 2021.
Recent History of Layoffs
This marks at least the fifth significant round of layoffs for the company in the past three years:
- August 2022: Initial layoffs affecting 20% of personnel spend
- October 2023: more layoffs to align with new business model
- January 2024: Another wave of layoffs following a disastrous Q3 2023
- December 2024: Layoffs connected to abandoning the bootcamp business
- March 2025 (current round): Reported by former employees on LinkedIn
Financial Context
These continuing layoffs come as no surprise given 2U’s ongoing financial difficulties. The company filed for bankruptcy in July 2024, primarily due to the significant debt taken on to finance the edX acquisition.
At the end of Q3 2023, 2U reported debt exceeding $800 million, with its market capitalization having plummeted to just $62 million—a dramatic fall from the $800 million it paid for edX.
Strategic Shifts
In December 2024, 2U announced it would transition away from traditional bootcamps (acquired through its $750 million purchase of Trilogy Education) to focus on what it called “innovative technical microcredentials.”
The company has undergone several strategic pivots since the edX acquisition:
- Shifting to a “platform strategy” centered around edX in 2022
- Implementing a new marketing framework
- Exiting several university partnerships through “portfolio management”
- Abandoning the bootcamp business model
Uncertain Future
With the company in bankruptcy proceedings, the future of both 2U and edX remains uncertain. The edX platform, once a non-profit educational initiative from Harvard and MIT, has seen its operations significantly impacted by 2U’s financial troubles.
The current layoffs appear to be part of ongoing restructuring efforts as the company attempts to navigate bankruptcy and determine a sustainable path forward.
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Marcus
I think 2U/edX is dead. Layoffs over layoffs are no strategy and this is a sign of desperation, because the leadership have no ideas how to make the company successful again. For edX the only hope is, they find a buyer who is really passionate regarding MOOCs/online education as well, and bring the platform back to that level where they started.