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Dive Brief:
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2U is pivoting away from its traditional boot camps to transition to shorter microcredential programs focused on emerging skills, CFO and interim CEO Matt Norden said in a company post Wednesday.
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2U’s boot camps offer credentials in technical skills such as coding in 12-week to 24-week programs. The microcredential programs are expected to range from six to 12 weeks, according to a 2U spokesperson
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The company’s first microcredentials will come through a partnership with Columbia University’s engineering school and include professional certificates in Python fundamentals, machine learning and applied fundamentals in artificial intelligence, Norden said in his post.
Dive Insight:
2U originally launched as an online program manager for universities looking to expand their reach through digital degrees. It expanded into the bootcamp business with the 2019 acquisition of Trilogy Education.
The company bolstered its boot camp business when it bought edX 2021, which helped 2U widen the reach of its offerings. To date, 2U boot camps have produced some 96,000 graduates, and it has partnered with more than 50 universities on the programs, according to Norden.
But the company’s bet on boot camps went sideways relatively quickly. As demand fell for boot camps and 2U’s OPM services, the debt the company took on to acquire Trilogy and edX weighed heavily, leading 2U ultimately into bankruptcy court in July. The company restructured its debt, reorganized as a private company, and exited Chapter 11 less than two months later.
Explaining the company’s struggles in bankruptcy papers this summer, Norden pointed in part to waning interest in boot camps after 2021.
“Demand for entry-level technology jobs unexpectedly declined as technology companies began shedding employees following a boom in hiring during the pandemic,” Norden said. “Coupled with the rapid and unanticipated adoption of artificial intelligence during the same period, demand for 2U’s coding Boot Camp offerings declined.”
In announcing the company’s transition away from boot camps, Norden on Wednesday cited similar market forces.
“Demand for entry-level tech roles has decreased while the pool of available, experienced tech talent has expanded,” he said in his post. “Simply put, the long-form, intensive training that boot camps provide no longer aligns with what the market wants and needs.”