As of October 2023, 2U has announced additional layoffs as part of its strategy to realign the company’s operations with its new business model. The layoffs were expected to affect about 413 employees, based on the 3,445 full-time employees worldwide it had at the end of the previous year. The company had previously laid off a significant number of employees as it shifted to a “platform strategy” built around edX, which it acquired for $800 million in mid-2021. These layoffs were part of 2U’s efforts to become a “platform company” by unifying all its operations under the edX brand. However, the stock market had not responded positively to 2U’s changes, with the company’s stock price dropping by 60% in that year and 97% in the last five years.
Background
Company Overview:
- 2U, Inc. is an American educational technology company that collaborates with non-profit colleges and universities to develop, deliver, and support online degree and non-degree programs.
Operational Segments:
- The company operates through two main segments: the Degree Program Segment, providing technology and services for online degree programs, and the Alternative Credential Segment, offering online open courses, executive education programs, boot camps, and micro-credential programs.
Employee Base:
- As of 2022, 2U has a substantial global employee base.
Strategic Changes:
- 2U has undergone strategic changes, including acquisitions (GetSmarter and Trilogy Education in 2017) and organizational realignment.
Challenges Faced:
- The company has faced challenges such as a decline in degree enrollments and a drop in its stock price, falling below the amount paid for the acquisition of edX.
Mission:
- 2U’s mission is to eliminate the back row in higher education by providing high-quality online education and services, ranging from free courses to degree programs.
Partnerships:
- 2U collaborates with top-tier partners to create impactful digital education reaching millions of learners globally.
Leadership Change:
- In 2023, Paul Lalljie replaced Chip Paucek as CEO, and the company changed its name from 2tor to 2U.
Headquarters:
- 2U’s headquarters is located in Lanham, Maryland, USA.
Prominence in Online Education:
- Overall, 2U, Inc. is a prominent player in the field of online education technology, working closely with educational institutions to provide a diverse range of online learning opportunities.