Denver’s Galvanize, a network of coding schools and coworking spaces, this week announced layoffs and plans to shutter one of its local spaces in a move toward “self-sustainability” its CEO said.
Galvanize, which operates nine campuses in six states, laid off 27 employees across the country and 10 in Colorado. The company currently has about 375 total employees following the move.
Galvanize CEO Harsh Patel, who was brought on in April, said the company didn’t restructure after acquiring coding bootcamp company Hack Reactor in July 2018. Patel previously served as Hack Reactor’s CEO and was named Chief Product Officer at Galvanize following the acquisition.
He said after visiting the campuses and reviewing Galvanize’s operations, the company saw opportunities to reduce staff and operating expenses to move toward a more sustainable model.
“Galvanize has been venture backed for seven years now,” Patel said. “We’re at a point where we are a mature enough business and I would like to see us move toward self-sustainability going forward, versus always raising venture capital.”
While Patel said investors were supportive of the move and interested in the company’s longevity, they didn’t drive the decision.
Coming off the company’s $32 million Series C funding in 2018, Patel said the company hasn’t had discussions regarding a further funding round.
“There’s always talks, but there is nothing concrete at this time,” he said of raising venture capital.
Galvanize first opened its Golden Triangle location at 1062 Delaware St. in 2012, offering coworking and coding bootcamps. The company then announced a year later that it would open a second location at 1644 Platte St.
As part of the recent reorganization, Patel said the company is looking to get out of its lease at the Golden Triangle location. Despite being the company’s initial location, Galvanize Golden Triangle has operated exclusively as a coworking space over the last year and hasn’t offered bootcamps, Patel said.
When asked what timeline looks for shuttering the location, Patel said he doesn’t expect any changes over the next few months, adding that the Platte Street location will be able to accommodate members from the Golden Triangle space.
Apart from the two Denver locations, Galvanize also operates a third Colorado space on 1023 Walnut St. in Boulder. Patel said he doesn’t anticipate closing any other Galvanize locations around the country at this time.
As the business pivots from venture backed to sustainable growth, Patel said the company has seen strong growth in live, online education programs and a slight dip in some in-person bootcamps.
The company has also seen growth in enterprise work in educating workforces at Fortune 100 businesses and Patel anticipates that growth is likely to continue.
“That part of the business is becoming a bigger and bigger part of Galvanize,” he said.
Patel added that the company’s coworking model will remain untouched as a result of the restructuring.
