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Present is Prologue

Tag: Jay Bhatt

  • Blackboard seems to have cut large amount of workforce

    Update: Please see new post with updated information.

    Update: I heard back from the company that part of the discrepancy in numbers is that public statements about employee count may have changed in whether they included the call center employees (which vary seasonally). If I can get some hard numbers from Blackboard, I will publish a new post with more accurate information. For now, please note that the 26% number may be based on inconsistent definitions. Accordingly, I have changed the post title and am bumping this post.

    The Washington Post ran a piece over the weekend about Blackboard’s reorganization efforts since Jay Bhatt took over as CEO.

    Blackboard has upended its corporate structure and strategy behind closed doors since chief executive Jay Bhatt took over the private company a year ago with a mandate to reinvigorate one of the District’s oldest and most recognized technology brands.

    The changes come after years of eroding market share for Blackboard, a pioneer in online learning management software. Bhatt said the changes made in the past year provide a foundation on which to grow the business.

    Michael and I have both noted some of the layoffs that have taken place as well as the reorganization and removal of silos. Alert former employee George Kroner, however, noted on Twitter just how significant the layoffs have been. This nugget from the WaPo story is the key:

    Blackboard today is completely reorganized, compared with a year ago, a process that required layoffs in some departments and new hires in others, Bhatt said. The company counts roughly 2,200 employees to date.

    Compare this to the first story on company layoffs from September 2012, from Bill Flook at the Washington Business Journal. Note that Michael Chasen was still CEO at this point, as Jay Bhatt took over at the end of December 2012.

    In a statement, Blackboard spokesman Matthew Maurer said the company has “seen strong growth this year in terms of revenue and in the acquisition of new businesses that have opened up new markets for us.” The company’s total workforce now stands at 3,000 globally, “even with the recent elimination of a small number of roles,” he said.

    That is a significant change, if these stories are accurate, going from 3,000 employees to 2,200 in less than 18 months – a reduction of more than 26% of the workforce [see update above].

    I’m sure that not all of these losses have come from layoffs, as a fairly significant number of employees have likely left of their own volition. This is fairly typical within companies making such significant changes, however.

    For now, it’s worth noting that there are big changes happening at the two biggest commercial LMS providers (Desire2Learn recently laid off 7% of its workforce).

  • Layoffs and reorganization at Blackboard

    Bill Flook, who covers the DC technology scene for Business Journals, just interviewed Blackboard CEO Jay Bhatt about last week’s layoff. The full article can be found here. From a quick read, it looks like Blackboard is executing on two key priorities:

    • Trimming the fat caused by years of acquisitions and redundant operations; and
    • Completing the acquisitions by centralizing core functions, particularly under new management.

    From the article:

    Blackboard Inc. carried out a round of layoffs last week as part of a broader reorganization by CEO Jay Bhatt, the latest in a string of actions aimed at revitalizing the 16-year-old ed-tech behemoth.

    Bhatt, in an interview Tuesday evening, confirmed the job cuts, which he described as “a very small action we took to take some costs out of the business, primarily on things that don’t allow us to get where we need to go.” He declined to specify the number of layoffs.

    As for the priority of trimming the fat, it is now fairly clear that Blackboard is not set to divest any major product lines, but rather will follow a path of centralization. The new management team is a key part of the reorganization plans.

    (more…)

  • Yup, Something (Good) Is Up at Blackboard

    When a company the size of Blackboard makes substantial organizational changes, it can be difficult to assess what is really going on. In the beginning, the stories tend to look similar. The old CEO…decides he wants to “spend more time with his family.” ((Or “hikes the Appalachian trail.” Pick your favorite euphemism.)) Well-known long-time employees leave the company en masse, some of their own volition and others not. It’s a common enough story trope, but it comes with two distinctly different endings. In one version, the company accelerates its downward spiral until it crashes spectacularly. In the other version, everybody is amazed at the company’s revitalization and they live happily ever after. It is nearly impossible to tell from the beginning of the story how it will end. All of the people leaving the company are, of course, unhappy and are likely to have negative opinions of what’s going on. And often they have valid criticisms, even in the stories that later come to happy endings. When an executive is trying to turn around a billion-dollar company quickly, a scalpel won’t do it. Some meat cleaver work is necessary. Collateral damage is inevitable even in the best of cases. So reports from former employees are interesting but don’t tell the whole story. Customers won’t see the results of the changes for a while, so there will be few clues there. In fact, they may see things get worse before they get better due to the chaos of the reorganization. And even the employees who are on the inside often don’t know what to think in the early stages.

    And so it has been with Blackboard. Up until recently, it has been very hard to tell which way the story will go. But I agree with Phil that we’re beginning to see early signs that we may get the happy ending here. I had an opportunity to visit Blackboard this week, and what I heard is very consistent with Phil’s recent experiences with them.

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  • CEO Transition at Blackboard is Latest Move in Corporate Turnaround

    On Monday of this past week Michael Chasen announced that he is leaving Blackboard, the company he co-founded in 1997 and has led as CEO since 2001. Blackboard simultaneously announced the appointment of Jay Bhatt, a software industry executive as the immediate replacement.

    As Rip Empson has noted in TechCrunch, this is the end of an era. I agree with Josh Kim and Ray Henderson in calling out Michael Chasen’s role as an industry pioneer, and I would argue that Chasen was the leading force in creating the enterprise-level, mission-critical educational technology market. Henderson also points out that Chasen played a leading role in developing a sustainable revenue model that enabled much of the transformation seen over the past decade.

    Empson described in his article that this are two sides of this latest story from Blackboard.

     This week, in a letter addressed to “The Education Community,” Michael Chasen stepped down as the CEO of edtech software giant, Blackboard. In a way, it’s the end of an era. Whether or not it was an “era to remember” remains to be seen.

    Why is this significant? Because of what Blackboard has come to represent — both for good and for ill. On the one hand, the company became one of the biggest success stories in the education space, bringing mainstream consumer and investor attention (and scale) to an industry that previously had little. But that’s only one part of Blackboard’s story.

    What should we expect from the future Blackboard? I believe the best way to understand future changes at Blackboard is to view the CEO transition as the latest move in a corporate turnaround – and an unsurprising move .

    (more…)

  • Michael Chasen Leaving Blackboard

    In case you haven’t heard the news yet, Blackboard has hired a new CEO—Jay Bhatt, previously the CEO of Progress Software. According to Mr. Chasen’s “open letter to the education community,” he will be participating in the transition for the next few months. No word yet on what he will do after that. Ray Henderson has an interesting reflection blog post up about the transition.

    I’m sure we’ll have more coverage of this event here on e-Literate in the coming days and weeks as we learn more and have time to think about what it means.