Calm before the storm - Anonymous employee Cengage Employee Review

1.0
May 7, 2019
Anonymous employee
Recommend
Business Outlook

Pros

People are pretty nice. Good holiday schedule.

Cons

If you are considering taking a position with Cengage, you should know that the company is merging with its primary rival, McGraw Hill, in early 2020. Both companies have been in revenue decline for several years, and CEO Michael Hansen has announced he expects $300 million in savings as a result of the merger. He has also made comments that the 2 companies have too many offices -- especially in the midwest (his words). It doesn't take an MBA to realize that the merger is going to result in massive layoffs in 2020. McGraw and Cengage virtually mirror each other in the market, and the new company will not need duplicated sales, marketing, editorial, IT, HR, legal, etc. staffs. They're also not going to want to pay for 10-12 office/warehouse locations between the two entities (there are maybe 200 employees in the Farmington Hills office). Also consider that both companies have been owned by private equity owners who are eager to get out of there investments which are declining in value. They have a short window to shine up the balance sheets and make the company look profitable, and will be ruthless in drastically reducing the workforce and shedding unwanted assets in order to show a short term profit. The company that remains after they are done slashing is not one I want to be working at. A lot of people around here seem to be in complete denial about what is going to happen, which is strange but understandable given the shock, I suppose. The good thing is we have until next year to polish up our resumes and look for new jobs before the axes start swinging. Once the deal is finalized it is going to get very ugly very quickly.

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3.0
Jun 4, 2026
Recommend
Business Outlook

Pros

Company has some interesting approaches to the market and in the past they seemed value employees. There are some good employees there and there was, in the past, visionary leadership, but the people with the vision and leadership skills left the company a few years ago.

Cons

The company actively de-values employees. They had a project they called "Project Horizon" where they told all employees they needed to cut costs, so the company was going to have multiple layoffs over 3-5 years - but nobody was allowed to know when, where, or why - - just one day large swaths of people would be gone. That hung over everyone's heads - for years, and is indicative of how Cengage values employees - it doesn't. Everything is about trying to secure new funding and prepare for an IPO, so they stopped investing significantly in the products about 3 years ago and that's about when they stopped acting like they cared about employee wellness as well.

9
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