Cengage Learning, an educational publishing company, has announced its new headquarters will be in Boston and that another office is set to open in San Francisco. The company exited bankruptcy on April 1 after having declared Chapter 11 status in July of 2013.
According to an article by David Harris of the Boston Business Journal, the 5,000-employee company will add an additional 50 positions in Boston. The company’s previous headquarters in Stamford, Connecticut, will be closing in the next few months, with some of those employees making the transition to Boston.
“We believe that Boston is the center for future growth of education technology and as a result, we believe Cengage Learning should be an anchor of the community,” CEO Michael Hansen said. “At Cengage, we have some of the most talented and forward-thinking minds in the industry. Just as students thrive in an innovative and engaging classroom setting, so shall Cengage, with a new headquarters in one of the most engaging and innovative cities in the world.”
Formerly focused on publishing textbooks, Cengage calls itself the second-largest producer of course materials in US higher education. A focus on printed materials likely led the company, which reports annual revenue of $2 billion, to file for bankruptcy last year as more and more educational materials go digital.
In early April, according to an article by Reuters, Cengage was able to cut $4 billion of its $5.8 billion in debt as well as secure new loans totaling a further $1.75 billion to exit the bankruptcy status. The article goes on to highlight Cengage’s trials and tribulations in turning into a digital education comapny.
The company made headway into digital learning with its CengageCourse line, but other factors have hamstrung the industry, including spending reductions by state and local governments and the growth of the used book and book rental markets.
Cengage has operations in 20 countries and Hansen said the new office in San Francisco is in place because of that city’s focus on technological innovation.
Cengage is looking to rival tech giants such as Facebook, Google, and Twitter as far as facilities for its employees are concerned. It wants to attract the applicants with the best profiles by having the most attractive facilities, writes Elise Craig for Xconomy.
The company also recently announced a new partnership with Celebrus Technologies. The partnership will investigate behavioral results to try and paint a clearer picture of how students and teachers use online class materials in the classroom.
This information will help discover students’ and professors’ needs and wants in an attempt to better program educational technology to fit their needs.