Lambda School Cuts Staff and Salaries Amid ‘Uncertainty in Hiring and Financial Markets’ – Ed Surge
Lambda School, the San Francisco-based operator of online coding bootcamps, has laid off 19 employees. The executive team, including CEO and co-founder Austen Allred, will also be taking a 15 percent pay cut, he wrote in a blog post announcing the moves. The layoffs affected staff “across the company,” he noted, including instructors.
In the post, Allred said that “uncertainty in hiring and financial markets may affect our business.”
Lambda School has been one of the most high-profile and vocal proponents of its income-share agreement (ISA) tuition model. The company does not charge students upfront tuition for its computer science courses, which cover data science, web development and other programming skills. Instead, after getting a job that pays them at least $50,000 a year, students pay 17 percent of their salary for two years. Payments are capped at $30,000.
More than 22 million Americans filed for unemployment over the past month. The tech industry has not been spared, with large-scale layoffs impacting the likes of Carta, Opendoor and Yelp.