The education technology sector reeled from shock when Boundless Learning cut 15% of its workforce. The company delivered this devastating news to employees through a Zoom call on February 6, 2024. Workers received no severance packages or compensation for their accumulated paid time off.
The story behind these job cuts reveals a complex corporate journey. The company, which operated as Pearson Online Learning Services (POLS), transformed into Boundless Learning after its acquisition and rebranding. Pearson had already let go of some employees last March when they announced the sale. The latest round of cuts from Boundless Learning proved nowhere near as gentle – reports suggest all but one of these cuts affected almost half of the company’s workforce. This piece dives into the details surrounding these terminations, how they affect employees, and what it all means from a legal standpoint.
Boundless Learning Announces Mass Layoffs Via Zoom Call
Boundless Learning, an educational technology company, shocked its employees with sudden layoffs through virtual meetings in early February 2024. The company left workers without financial support. This harsh approach to job cuts shows how tech companies now handle mass layoffs without offering standard severance benefits.
Company cuts 15% of global workforce
Boundless Learning laid off about 15% of its staff on February 6, 2024. The cuts hit hundreds of employees in sales, software development, marketing, and customer support teams.
Private equity firm Regent LP bought the company—previously Pearson Online Learning Services (POLS)—in July 2023. Company executives had planned these cuts for months. They stopped hiring new people and didn’t fill empty positions.
The situation might be worse than it appears. Some sources say nearly half the staff lost their jobs. This number is much higher than the 15% the company announced.
Employees receive no severance packages
Boundless Learning’s decision to let go of employees without severance pay has sparked outrage. This goes against normal industry practices and might break employment laws in some places.
Canadian law protects non-unionized Boundless Learning employees. They must receive severance pay after losing jobs due to restructuring. In Canada, severance can reach up to 24 months’ pay based on factors like time at the company and job level. This rule applies to all workers in Ontario, Alberta, and British Columbia.
Employees shared their frustration:
- “No severance, no warning, just a cold email telling me my job was gone”
- “After dedicating years to Boundless Learning, being laid off without adequate support was a harsh reality check”
- “The lack of proper communication and empathy from leadership was disheartening”
Termination notices delivered abruptly
Boundless Learning’s layoff method faced heavy criticism. The company hosted mass Zoom calls where employees couldn’t use their cameras or microphones during the termination announcement. A former employee said they were “in a teams call with roughly 30 others, mics muted, cameras off, chat disabled”.
The company cut off system access 30 minutes after the notification. Laid-off employees couldn’t hand over their work or get their personal files. They lost access to company emails, internal systems, and buildings right away.
The notification process was chaotic. Some employees got meeting invites while others learned about their termination through emails after the meetings. This messy communication made things even harder for everyone.
Legal questions have come up about these layoffs. The company might have broken the WARN Act, which says companies must give advance notice for mass layoffs in certain cases. People also worry about how the company treated employees on parental leave and whether it targeted specific workers unfairly.
How Did Boundless Learning Emerge From Pearson Online Learning Services?
The educational technology world witnessed a radical alteration as Pearson Online Learning Services became Boundless Learning. This move brought corporate restructuring and financial challenges.
Regent LP acquires POLS in July 2023
Pearson PLC started this journey by announcing the sale of its Pearson Online Learning Services (POLS) division to Regent LP, a California-based private equity firm in March 2023. Athena Education International, part of Regent LP, took control of the business on July 1, 2023. This decision came after Pearson’s strategic review in August 2022.
The companies’ financial arrangement showed POLS’s struggling position. Pearson would receive 27.5% of POLS’s positive adjusted earnings over six years after completing the transaction. They would also get 27.5% of any proceeds if Regent sold the business later. “Pearson will not share in any loss making periods,” the company statements confirmed.
This unique payment structure highlighted POLS’s financial struggles. The business generated £155 million in revenue in 2022 but faced an adjusted operating loss of £26 million and a statutory loss before tax of £52 million. Industry analyst Phil Hill described the transaction as “somewhat of a distressed sale” where Regent would “make the big cuts to get it profitable” while Pearson would “make money only if you can turn it around”.
Rebranding strategy and business model changes
POLS transformed into Boundless Learning after the acquisition. This new identity marked a fresh beginning. The company planned to utilize its 30-year history as Pearson Online Learning Services while expanding “beyond traditional online program management”.
Boundless Learning’s strategic priorities included:
- Making “learner success at the heart of everything we do”
- Adapting business and financial models to partner needs
- Growing globally (serving learners in over 150 countries)
- Using “learner-centered design” principles
CEO Kees Bol shared this vision. He stated they would “build from our vast experience and distinguish by putting learner success at the heart of everything we do, working with our partners to deliver tailored, learner-centric experiences”.
Previous layoff patterns under new ownership
Signs of workforce reductions emerged soon after the acquisition. Boundless Learning held a town hall meeting in mid-June 2023. New employment contracts lacked severance clauses and 401(k) sharing. Internal Pearson systems labeled employees as “Contingent Employees” by early July.
Leadership announced major changes to their Maryville University contract during a town hall meeting on July 10, 2023. This was one of their largest accounts. Boundless would now support only Maryville’s Nursing Programs and discontinue many undergraduate and certificate programs.
Executive leadership admitted they “had been expecting and embracing for, for months” during this meeting. This knowledge led them to implement a hiring freeze and stop back-filling vacant positions.
This approach matched patterns at other Regent LP acquisitions. Former employees compared it to layoffs at Zulily, another Regent portfolio company, which had “no severance, no payout for paid time off, no insurance coverage, mass meeting notification”.
Employees Share Their Termination Experiences
Boundless Learning’s staff members shared their experiences about a chaotic and cold termination process that left deep emotional scars throughout the organization in February 2024.
System access cut within 30 minutes of announcement
The company’s digital shutdown became a recurring theme in terminated employees’ stories. Boundless Learning cut off all digital connections right after announcing the layoffs. Employees lost their access to email, internal systems, and company resources just 30 minutes after getting the news [link_1]. This sudden disconnection left many unable to save personal files, say goodbye to coworkers, or hand over their work properly.
A staff member discovered that Microsoft Teams had disabled cameras and microphones even before the announcement started. This calculated move made many employees feel worthless:
“I couldn’t even send a goodbye message in teams because it was already locked. What a joke. Absolute joke of a company,” stated one former staff member.
Workers report shock over zero compensation
Staff reactions turned intense when they learned about the absence of severance packages. Many loyal employees felt betrayed after giving years of their lives to the company:
“I was suddenly let go after dedicating years to this company. It felt like all the hard work, loyalty, and late nights meant nothing,” shared one former employee.
The reality clashed with what management had promised earlier. A terminated worker explained: “When I questioned management if there would be lay offs (as I was trying to plan ahead), I was reassured that my position was secure and things would pick up. Less than a week after that conversation I was pulled into an office and told the company was down sizing”.
Legal questions arise about termination procedures
Legal concerns have emerged about how Boundless Learning handled these terminations. Critics raised several issues:
- Potential WARN Act violations for lack of advance notice
- Targeting employees on parental leave
- Possible discrimination patterns in selecting terminated employees
- Failure to provide legally required severance in certain jurisdictions
The company seems to have planned this approach carefully. An industry observer noted, “These moves are deliberate and, I believe, part of the reason for the acquisition”.
The remaining employees’ morale has hit rock bottom. “Boundless Learning was once a great place to work, but the recent decisions have made employees feel disposable,” a current staff member shared.
Why Has Boundless Learning Implemented These Cuts?
Boundless Learning cut 15% of its workforce due to mounting financial pressures that built up since Pearson’s acquisition.
Financial struggles following major client losses
Boundless Learning’s financial troubles started when it lost its biggest institutional clients. Arizona State University’s contract termination hit the company hard. This partnership brought in £93.71 million, about 40% of POLS’s total revenue of £243.81 million. Ohio University, the company’s third-largest client, also left. These losses created a huge financial gap and led to a 69% drop in the OPM (Online Program Management) business.
Restructuring efforts to focus on profitable programs
The company headed over to more financially stable operations after these setbacks. July 2023 brought a major change when the company restructured its contract with Maryville University. The new agreement focused only on supporting Maryville’s Nursing Programs and stopped many undergraduate and certificate programs. This choice came after “months’ worth of research and analytics” showed graduate nursing programs were more profitable than undergraduate ones.
Market pressures in the educational technology sector
The EdTech sector’s challenges made things worse for Boundless Learning. The industry grew by 72% during pandemic lockdowns, but this growth didn’t last. Schools went back to traditional teaching, and companies like Boundless Learning saw their demand drop sharply.
UK’s EdTech investment fell by a lot, going from £434.41 million in 2023 to about £176.30 million in 2024. Established platforms like Coursera and Udemy grabbed bigger market shares with their diverse offerings. These market challenges, combined with Boundless Learning’s 25% revenue drop over the last year, made job cuts inevitable.
What Legal Options Do Affected Employees Have?
Boundless Learning’s sudden layoffs have sent shockwaves through the ed-tech industry. Former employees don’t deal very well with their missing pay and lack of notice, so they’re learning about their legal options.
Severance entitlements in different regions
Location substantially affects severance rights. Non-unionized Boundless Learning employees in Canada could receive up to 24 months of severance pay after termination without cause. This rule applies to workers of all types in Ontario, Alberta, and British Columbia. Canadian employees have a two-year window from their dismissal date to claim proper severance.
U.S. federal laws tell a different story. The Department of Labor doesn’t require severance pay and calls it “a matter of agreement between an employer and an employee”. Company contracts might still create binding obligations.
UK employees have specific rights under the Employment Rights Act 1996. Workers with two years’ service can claim statutory redundancy pay. Age, weekly wage (capped at £719 from April 6, 2025), and years of service determine the final amount.
Class action possibilities emerge
Former employees have started talks about class action lawsuits. One key claim focuses on WARN Act violations, which demand advance notice for mass layoffs. Twitter’s 2022 layoffs saw similar legal battles, where employees claimed they received just one month of severance instead of the promised three months.
Indian employees could file civil lawsuits under the Indian Contract Act if Boundless Learning broke agreed termination terms.
Employment lawyers weigh in on worker rights
Legal experts say employees should review their contracts carefully before accepting severance offers. Employment law firms suggest using calculation tools to “double-check the amount” of any severance offer.
Employers often set deadlines for signing severance offers, but these deadlines rarely hold legal weight in most places. Lawyers suggest looking closely at non-compete or non-disclosure clauses that could limit future job prospects.
Employees have legal options even without severance if they believe their termination was unfair or the company broke contract terms.
Conclusion
Boundless Learning’s recent workforce cuts showed a troubling example of how corporate restructuring can hurt employees. The company fired 15% of its staff without severance packages or proper notice. This left hundreds of workers in financial and emotional distress. They handled it poorly – through mass Zoom calls where cameras and microphones were disabled. Workers found themselves locked out of their systems right after.
Money problems played a big role in this harsh decision. The company lost major clients like Arizona State University and Ohio University. Market pressures in the education technology sector created huge revenue gaps. Even with these challenges, the way they handled the layoffs raises serious questions about ethics and legal compliance.
The laid-off employees must now decide whether to take legal action. While severance rights differ by region, many fired workers might have valid claims under various employment laws. Some are already talking about class action lawsuits, especially about possible WARN Act violations.
This case shows how vulnerable workers become during private equity takeovers. When Pearson Online Learning Services became Boundless Learning, it ended up exactly as industry experts predicted. The company made deep cuts to boost profits quickly. Their actions serve as a warning about what happens when companies put profits before people during restructuring.
The Boundless Learning layoffs point to a bigger problem in educational technology. The sector’s growth during pandemic years has now turned into downsizing and job uncertainty. These firings will damage not just the former employees but also hurt the company’s image. The remaining staff’s morale and their ability to deliver quality education will suffer too.
FAQs
1. How many employees were affected by the Boundless Learning layoffs?
Approximately 15% of Boundless Learning’s global workforce was cut, though some reports suggest the actual number may have been closer to half of the staff.
2. Did employees receive severance packages?
No, Boundless Learning terminated employees without providing severance pay or compensation for accumulated paid time off.
3. How were employees notified of their termination?
Employees were notified through mass Zoom calls where their cameras and microphones were disabled. Some received meeting invitations, while others learned about their termination through follow-up emails.
4. What led to these mass layoffs at Boundless Learning?
The layoffs were primarily due to financial struggles following major client losses, including Arizona State University, and broader market pressures in the educational technology sector.
5. What legal options do terminated employees have?
Affected employees may have various legal options depending on their location, including potential claims for severance pay, WARN Act violations, or breach of contract. Some are considering class action lawsuits.