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HomeTech Newsbloomtech: US edtech startup BloomTech, formerly Lambda School, lays off half of...

bloomtech: US edtech startup BloomTech, formerly Lambda School, lays off half of its staff

The Bloom Institute of Technology, a virtual coding school formerly known as the Lambda School, is reducing half of its staff, according to a report by US technology news site TechCrunch.

The online coding school last cut jobs in April 2021, which was seen as a restructuring triggered by the Covid-19 pandemic.

The Bloom Institute of Technology or BloomTech works with the ISA (Income Sharing Agreement) structure, according to which an institute allows a student to study for zero initial fee, in exchange for a fixed percentage of his income when he is employed.

Indian online institutes like Masai School and Newton School also follow the ISA framework. This platform usually offers technical and vocational training to students, who are promised a job after graduation. These companies usually guarantee their students a job and make money from them only when they have a job.

According to TechCrunch’s report, the team was informed about the company’s decision by CEO Austen Alfred in a meeting. The report also cited documents that suggest employees will receive medical benefits and normal pay through January 31, 2023 and are “expected to work” during that time.

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The online coding school that promises lucrative tech careers for its students changed its name last year. The company came under scrutiny after some of its alumni alleged that the school was inflating its job placement fees to attract students eager to get a job.

She faced a lawsuit filed by three of her former students, alleging that the company had made false promises and misrepresented job placement rates.

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