Cengage saw strong sales growth as the Online Skills business grew by more than 40%, and Cengage Unlimited drove the company’s affordability initiatives forward as total student savings surpassed $270M. To prepare for the merger, Cengage is downsizing in an effort to reduce its operating costs. This time it is closing down office in San Francisco. Search. Cengage is best in class when it comes to creating educational content; it is great to hear that your experience training educators with our content was such a rewarding experience. We’re unabashedly raising the bar on our standard of service, and look forward to helping faculty, institutions and learners reach new heights in the New Year. While they are doing so, actively listen to what they are saying. The merger has faced fierce opposition from consumer advocacy groups, students and even college bookstores, but a fast-changing publishing environment and challenging negotiations have added complexity to the process. The Justice Department is rumored to have asked the publishers to make a divestiture worth around $175 million -- the upper limit of what the companies stated they were prepared to do in their merger agreement. It expresses regret and focuses on future plans, yet doesn't mention the number of people leaving, which The New York Times reported at about 300, or 4% of the workforce. On The Layoff, an anonymous discussion board for rumored company layoffs, some commenters theorized that it would be in McGraw-Hill Education’s interest to delay the merger given Cengage’s relatively weaker financial position. Cengage is #BuiltForThis – whatever 2021 throws at us, we’ve built a strong foundation of easy-to-use, quality digital learning solutions that are designed to empower all kinds of students. A spokesperson for both McGraw-Hill Education and Cengage said that conversations with the Department of Justice regarding potential divestitures are ongoing. A free inside look at company reviews and salaries posted anonymously by employees. employees that haven't changes their way of thinking since 1998 and have somehow hung around need to go. The most recent is ESPN's, also posted on the organization's website. You can digitize the content, package it in a subscription, rent it, give it away....do whatever you want but it won't matter. Uncover why Cengage is the best company for you. By no means is it easy or simple, but there's at least a finality to it. No one likes it. The Cengage brand means nothing. When publishers Cengage and McGraw-Hill Education announced merger plans last May, they hoped to have the process wrapped up by the end of this March. New Zealand and Austria. The reality is that employees at MOST companies do not exist week to week. Cengage Layoffs: Downsizing related discussion, postings, questions and answers. These days, not a week goes by without a layoff message. “No final decisions have been made, and the companies will not speculate about potential business changes. See more. Amy Newman is a senior lecturer of management communication at the Cornell SC Johnson College of Business, School of Hotel Administration. But like everything else with Cengage, you are the the ones getting shafted. Merging two giant educational publishers was never going to be smooth sailing, but the process has been rockier than Cengage and McGraw-Hill Education expected. 1,477 Cengage reviews. It's not normal and if you had an ounce of self-respect you would move on. Unemployment Claims Jump, Casting New Shadow Over U.S. Economy. In the short term, it is anticipated that the publishers will stop developing new products or making large investments. Decisions are made on a course-by-course basis using a market concentration measure known as the Herfindahl-Hirschman Index. A company that targets senior employees for elimination cannot expect to recruit quality talent. These divestiture decisions are thought to be further complicated by the fact that many of the publishers’ most popular textbook titles are linked to proprietary digital learning platforms and tools, which may have to be sold or leased to the publishers’ competitors in order to comply with the Justice Department's request, sources told Inside Higher Ed. The sad reality is that nowadays week to week is all you can expect no matter what company you work for. At Cengage the mantra that has been beaten into employees brains is "We have to cut jobs because DISRUPTION! The nerve if these dumb millennials. Downsizing and layoffs introduce many different changes in an organization including a change in how comfortable and secure each individual feels about their … And for the bottom line, research indicates that companies with very deep layoffs underperform the market by as much as eight percent over the ensuing three years” (Cascio, 2009, p. 2). You seem to give zero value to experience and even less to the knowledge these people have acquired. If the layoff was due to another reason, explain that. It's no different than big department stores. Last month, however, Cengage and McGraw-Hill Education extended the cutoff date on their merger agreement to May 1. Small, aggressive, solid competitors are eating away at market-share, Use of this website constitutes acceptance of our. The merger was conceived as a merger of equals, but perhaps it could turn into a takeover, they suggested. If this were a game of chess, you would resign or wait until you're taken out and checkmated. We continue in discussions with the DOJ and we will see.”. Sure. I know those of you who are left at Cengage are trying to cling to some justification for why you choose to stay by saying "Well every other company has massive layoffs too!" If you hit all of these points in a small, quick speech, you will help settle the nerves of the retaining staff members. Get the inside scoop on jobs, salaries, top office locations, and CEO insights. A layoff is the temporary suspension or permanent termination of employment of an employee or, more commonly, a group of employees (collective layoff) for business reasons, such as personnel management or downsizing (reducing the size of) an organization. Cengage Layoffs - TheLayoff.com Officially, the merger is still expected to take place in the first half of this year. If someone is asking for a CD ROM in a book it’s someone’s job to tell them we’re not in 1998 anymore and to cut that sh– out. When Downsizing is The Answer The market has no use for Cengage, MGH or Pearson. Are there rough periods and layoffs? Management chooses favorites and disregards everyone else. CA. Constantly updating your skill sets for the next move is the best you can do. Opponents to the merger worry the new mega-publisher, to be called McGraw Hill, will significantly reduce competition in the textbook market and enable the company to drive up prices. On The Layoff, an anonymous discussion board for rumored company layoffs, some commenters theorized that it would be in McGraw-Hill Education’s interest to delay the merger given Cengage’s relatively weaker financial position. Layoff definition, the act of dismissing employees, especially temporarily. A lot of that talk about targeting senior employees in't completely true. The problem with Cengage is the products stink. This company does layoffs every quarter. 182. Encompassing 120,000 square feet, the space offers a number of features, benefits and offerings for the nearly 600 employees based in the greater Boston area. McGraw-Hill and Cengage unveiled the transaction in May and are seeking approval from antitrust authorities worldwide, including in the U.S., U.K., New Zealand and Austria. Explain the benefits offered to staff members: outplacement, severance, etc. @8ifj+186PG6Oh These are the words of a broken Cengage employee. 2019-03-29. Best Cities for Jobs 2020 ... at the very least, more than a cost of living raise, but not by mass layoffs of tenured folks. It's not normal. Leadership has conditioned employees to live week to week wondering when the next cuts are coming. The fact that a layoff happened indicates something in your company's business model failed, said Marc Cenedella, founder and CEO of Ladders job search. thelayoff.com. There is no tenure at Cengage. MInd Tap is a joke. TheLayoff.com is a simple discussion board for all of us who would like to learn more about the rumors or possibility of job cuts in our company. Messages relating to layoffs at Cengage are presented below the company info. Amy Newman is a senior lecturer of management communication at the Cornell SC Johnson College of Business, School of Hotel Administration. The publishers strongly refute this, saying the merger will enable them to pass on savings to students and make their products more affordable. She teaches undergraduate and graduate courses in business writing, persuasive speaking, and corporate communication. At one time the authors were great, but those days are long...long gone. This company is just pathetic. “[L]arge layoffs tend to result in a substantial decline in employee morale and commitment and a significant increase in stress. It’s not just Cengage: https://qz.com/work/1663731/mass-layoffs-a-history-of-cost-cuts-and-psychological-tolls/amp/. THAT'S the problem. The long, slow march to oblivion is going to continue. At Cengage the mantra that has been beaten into employees brains is "We have to cut jobs because DISRUPTION! You get three breaks however throughout the day which is very nice. Latest; Search. City: State: Number of Affected Employees: Date: Source: San Francisco. Compare pay for popular roles and read about the team’s work-life balance. The message is typical in some ways but not others. Major Layoffs at Cengage - an Ed tech company. But taking the right actions couldn't be more crucial during this sensitive process, and as a layoff strategist, I recommend a structured approach to ensure this happens. When two large publishers merge, it is common for the Federal Trade Commission or the Department of Justice to request that the publishers sell areas of their portfolio that overlap. Layoffs and Job Reductions. As that date fast approaches, it seems increasingly unlikely the companies will achieve their goal. So far, neither party has publicly made a commitment one way or the other, possibly fearing an adverse reaction from textbook authors. Anyone over age 45 better have saved a lot, because it will take longer and longer to find a new job unless it’s contract work. Until that time, Cengage and McGraw-Hill remain separate companies, and it is business as usual for us and our customers. They simply don't understand that content revisions can be pushed and that the directive from the top is that we're a technology company, not a print company. Layoffs are an emotional event and giving your outbound employee space to air their grievances is a solid move. Private equity owners see it which is why they tried to merge Cengage and MGH. A Cengage spokesperson did not confirm how many employees or which roles were affected. In the recent Cengage investor call, Hansen was asked if there was a scenario -- perhaps if the companies were asked to divest “too many assets” -- when continuing with the merger would no longer make sense. Full stop. Few firms really know how to do layoffs right, and unfortunately, there really aren't any 'how-to' books or seminars on layoffs. About the Author. If the merger proceeds, observers and industry analysts will be watching closely to see whether any of McGraw-Hill Education’s titles become part of the Cengage Unlimited subscription offer, where students pay one flat fee to access all course materials. So much debt! If a decently or well-run company has to have a layoff to cut costs, they usually do one big painful round and move on. They did layoffs in all of the other locations too. But whatever you do, don’t try to pull a fast one. Of course. The new office is in the heart of Boston's innovation district. It's changing now, and the "tenured" (LOL!) Cengage Learning Inc Layoff History. The majority of these long time employees still want to hand you paper corrections, can hardly send an email or use Zoom yet are the first to throw anyone under the bus. The core objectives of the merger-- to improve affordability, extend choice and deliver high-quality products -- will deliver significant benefits to faculty, institutions and, importantly, students.”. By no means is it easy or simple, but there's at least a finality to it. If layoffs become necessary, people won’t be shocked if they have been able to see them coming. Like (2) This is the sign of a very sick and dysfunctional company. Most of the employees here at Cengage simply are out for themselves and not team players. Companies release little or no details while planning such resource actions. The merger was conceived as a merger of equals, but perhaps it could turn into a takeover, they suggested. The merger was conceived as a merger of equals, but perhaps it could turn into a takeover, they suggested. As the publishers’ portfolios overlap significantly and include some 44,000 titles, figuring out which products to keep and which to sell is not a straightforward process. So Cengage is stuck in a horrible position. Several factors are slowing down the merger process, sources close to the matter who spoke on condition of anonymity told Inside Higher Ed. Shows how out of touch those old fleabag editorial hanger-ons are. On The Layoff, an anonymous discussion board for rumored company layoffs, some commenters theorized that it would be in McGraw-Hill Education’s interest to delay the merger given Cengage’s relatively weaker financial position. Find out what works well at Cengage from the people who know best. The market no longer needs giant companies to provide higher ed content. Until the merger is completed, we remain separate companies and operate as independent businesses,” the spokesperson said. "Low Pay, Constant Reorgs and Layoffs, VERY cliquey" 1.0 ... Cengage was made from a lot of mergers with smaller publishers and everyone has their own practices and rules. Cengage has already furloughed staff, trimmed spending and deferred payments to save $200 million and offset potential sales losses. Literally no one. They're trying to create a brand name but no one in the industry knows who Cengage is. A round of layoffs and office closures began last week. The accelerated digitalization of education drove a strong financial performance for Cengage in the second quarter of fiscal 2021. But I have never worked at any company - nor heard of any company - that has had over a DECADE of rolling layoffs like Cengage has. Our Boston Cengage team officially has a new home: The Seaport's Pier 4! On the other hand, the lives of each of … A lot of these old hags still insist on getting a print product complete with all revisions before turning over final pages for digital content. Oh, and whatever you do, do NOT age. Hansen replied that there are scenarios in which the logic for the merger no longer holds, “but as I said in my prepared remarks, we are continuing in very constructive and thoughtful discussions and frankly we would not have entered the agreement if we thought that would be a big possibility.” He added, “We don’t see this as a real big scenario at this point, but the situation is fluid. When my name was pulled out of the Layoffs Hat, the department was down to about 110 people. About the Author. TheLayoff.com is live since January 31, 2009! We actually have one senior publisher who wants CD-ROMs in a book right now. 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As both McGraw-Hill Education and Cengage recently have laid off hundreds of employees in anticipation of merging, questions have arisen about how day-to-day operations at the publishers will be impacted if the merger continues to be delayed or perhaps even abandoned. The workforce reduction process is inherently secretive and plagued with rumors. When the goal of downsizing is to shed as many tenured employees as possible, you never know what week may be your last. If a decently or well-run company has to have a layoff to cut costs, they usually do one big painful round and move on. Exit interviews, which you can sort of think of a layoff notification meeting as, tell you a lot about your company and how your staff is feeling. On this issue, the spokesperson for the companies said simply, “both parties maintain their commitment to continuing and growing their inclusive access and Cengage Unlimited subscription programs.”, During the investor call, Hansen said, “Given the most recent industry developments and ongoing affordability pressures, the rationale for the merger remains strong. A further extension to Aug. 1 is possible by mutual agreement, though this would take the publishers dangerously close to the start of the fall semester -- an important sales period. Clear this text input. Hey Ticker you might be what’s wrong with corporate America right now. Be the first to know.Get our free daily newsletter. To that end, share market data and competitive information. The market can no longer support these companies. If you’re trying to hang on week to week ask yourself if you really want to be at Cengage. @8nxc+186PG6Oh Layoffs happen at every company. I would wager that someone old enough to remember Tickers isn’t a kid or new hire. The layoff — along with a recently introduced early retirement program, which 166 employees opted into ... Other education publishers, including Pearson, Cengage, and … Business Communication with Cengage Learning. Since Cengage and McGraw-Hill Education have so many competing textbook titles, it was anticipated that they would be required to sell a large proportion of them. I always tell people, MGH worked very hard to get from #1 to #5. level 2. A slimmed-down staff may look good to investors, but it’s difficult to see how it will benefit customers. It's pretty much the butt of jokes. But, for the most part, they are spaced out far, far further apart than they are at Cengage and typically reserved for hard times. Are you interested in learning how to deal with the effects of change on your remaining employees during layoffs? Business Communication with Cengage Learning. Wasn’t that the old cafeteria when we were at Thomson Place? Either way, the outcome is already assured. In an investor call last week, Michael Hansen, CEO of Cengage, said the publishers continue to “make good progress” on the merger, but he conceded that securing U.S. regulatory approval would require more time than anticipated. Don’t throw out the baby with the damn bath water. On the Content side there are still senior employees that refuse to budge from their print mindset. —18 days ago Browse all jobs on Inside Higher Ed Careers », We are retiring comments and introducing Letters to the Editor. Many Massachusetts-based companies have seen layoffs within the last couple of years. The deal was set to expire this month. ... RealNetworks founder and interim chief executive Rob Glaser has posted a layoff email to employees on Facebook. The industry has changed drastically. Some were asked to move to Boston (Head quarters) but majority were let go. 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