Hack Reactor, a popular coding bootcamp, has suddenly shut down its part-time program, Class Central has learned, leaving students disappointed and frustrated.

The decision to close the program was made by Stride, Hack Reactor’s parent company, seemingly to cut costs amid waning demand for entry-level tech professionals and challenges for edtech companies. Here’s what we know.

Motivations

First, let’s clarify the relationship between the companies involved. In 2020, edtech company Stride acquired coding bootcamps Galvanize and Tech Elevator. Galvanize had previously acquired Hack Reactor in 2018. Hence, Stride serves as the umbrella brand for all these bootcamps, with Galvanize operating both as its own bootcamp and as a subsidiary overseeing Hack Reactor.

The new changes seem geared toward redistributing and simplifying roles across Stride’s bootcamps — with Hack Reactor, arguably the strongest brand, handling only full-time programs moving forward, while Tech Elevator and Galvanize are now merged and will continue to handle part-time programs.

Behind it all lurks the shadow of a tech sector plagued by layoffs and waning job prospects. During the pandemic, many online bootcamps saw a peak in demand, and some assumed it was here to stay, leading to overly optimistic growth. This outlook impacted online education at large, not just bootcamps. We covered it in our latest end-of-year analysis: The “New Normal” that Wasn’t.

Reactions

Students who were enrolled in Hack Reactor’s discontinued part-time program will receive a full refund, but many are still upset about the sudden closure. Some students had already been in the program for several weeks, and some were just about to finish their end-of-module assessment when the news broke.

Another learner said:

The sentiment was also echoed on LinkedIn, both by learners and a now-former Hack Reactor instructor, seemingly let go as a result of this restructuring. According to a recent Reddit thread, Tech Elevator / Galvanize underwent layoffs a few days ago.

Trend

Hack Reactor shuttering its part-time program is only the latest controversy in a sector marred by questionable practices. Over the years, numerous coding bootcamps have been under fire for their cost, draconian Income Share Agreements (ISAs), and dubious claims regarding their graduates’ job placement rates. Class Central has covered this at length in previous articles:

• Bootcamps and ISAs: Economics, Challenges, and Opportunities
• Lambda School Woes: Lawsuits, Fines, Layoffs, and Media Scrutiny
• Are ISAs Affordable? Analysis of Lambda School’s ISA Shows an Estimated Interest Rate of 87%
• Lambda School 2020 Placement Rate at 30%: Insider Report

Perhaps in an attempt to placate bad press and start fresh, some bootcamps have rebranded (such as Lambda School, which became Bloom Tech). Others just called it quits, entirely shutting down. A Reddit user has been maintaining a list; it currently has more than 30 entries.