Here's our latest analysis of Guild (formerly Guild Education) based on a limited amount of publicly available data. Guild is a third-party provider of adult education, connecting big corporations like Walmart and Target with online schools like Purdue University Global (Purdue University's robocollege).
At one time, Guild Education was receiving a substantial amount of positive press, which put them on our radar in 2021. We were wary of all the hype. Forbes was a big contributor to its rise, along with ASU+GSV, Oprah, Steph Curry, Johny Taylor Jr., Michael Horn, and Kenneth Chenault. And the political ties from Mae Podesta.
In 2023, they were again on the radar as the edtech meltdown was occurring and investor money was drying up.
Since Guild is a private, for-profit company, this limits our ability to fully assess the company, including its value. It appears Guild has not received a capital infusion since the summer of 2022, and there is no indication that it has ever been profitable. Valuations.fyi reports that Guild's value has dropped from $4.4B in 2022 to $1.3B in 2024.
The last two years Guild has suffered significant layoffs, and its charismatic CEO Rachel Romer, who suffered a stroke, was replaced by a less popular Bijal Shah (who only has a 37 percent favorability rating on Glassdoor). The edtech company has gone through major transitions, including a rebranding, while downsizing its core business. More recently, it has acquired Nomadic Learning, a platform for educating corporate leadership.
Glassdoor reviews have provided more information that are summarized here:
1. Toxic Work Environment/Hostile leadership: The behavior of senior leadership, particularly the CMO, is described as hostile, manipulative, and discriminatory.
Lack of empathy: A lack of empathy from leadership towards employees is a recurring theme.
Discrimination: Instances of discrimination, both overt and subtle, are alleged, especially against women and employees of color.
2. Unfair Treatment and Inequity/Favoritism: Friends of leadership seem to be favored, regardless of merit or performance.
Unequal treatment: Women and employees of color appear to be disproportionately affected by negative actions, such as layoffs and discrimination.
Limited opportunities for advancement: The focus on "allies" in ERG spaces may limit opportunities for marginalized employees.
3. Erosion of Employee Benefits/Reduced holiday time: The removal of holiday time off and restrictions on PTO use have negatively impacted employees' ability to balance work and personal life.
Decreased support for employees: The company's focus on reducing costs has led to a decline in benefits and support for employees.
4. Misalignment with Mission/Prioritizing profits over people: The company's actions seem to prioritize financial gain over its stated mission of unlocking opportunity.
Disregard for employee needs: The company's failure to address the needs of its employees, particularly women and caregivers, contradicts its mission.
5. Loss of Talent/High turnover: The toxic work environment and declining benefits are likely contributing to a high turnover rate among talented employees.
Loss of marketing talent: The company's reputation is suffering due to the loss of its best marketing talent.
These issues raise serious concerns about Guild Education's culture, leadership, and commitment to its employees and mission. Addressing these problems will be crucial for the company's long-term success.
Why Acquire Nomadic Learning?
There could be several reasons why a company with a toxic work environment and declining employee morale would continue to acquire other businesses:
Diversification: Acquisitions can be seen as a way to diversify the company's revenue streams and reduce its reliance on a single product or service.
Market expansion: Acquiring other companies can help a company expand into new markets or geographic regions.
Synergies: The acquisition of complementary businesses can create synergies that lead to cost savings or increased revenue.
Talent acquisition: Acquisitions can be a way to acquire talented employees or intellectual property.
Short-term financial gains: Acquisitions can sometimes provide short-term financial gains, such as increased revenue or stock price appreciation.
However, it's important to note that these reasons may not be sufficient to justify the acquisition of other businesses if the company's internal problems are not addressed. A toxic work environment and declining employee morale can negatively impact a company's ability to retain talent, attract customers, and innovate.
It's possible that the company's leadership believes that acquisitions can help to mask or distract from the underlying problems. However, this is a short-term solution that is unlikely to be sustainable in the long run.
To truly improve its situation, Guild Education will need to address the root causes of its problems, including the toxic work environment, declining employee morale, and misalignment with its mission.
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