Code.org Cuts 18 Jobs to Ensure Long-Term Sustainability at Education Nonprofit

Code.org, the prominent nonprofit organization dedicated to expanding computer science education access, laid off 18 employees on January 21, 2026, citing the need to ensure long-term financial sustainability. The workforce reduction affects approximately 15% of the Seattle-based organization's staff as it navigates challenging funding conditions in the educational technology sector.

The layoffs come as Code.org faces mounting pressure to maintain operations amid shifting philanthropic priorities and reduced corporate giving in the tech education space. The organization announced the cuts internally before confirming the restructuring publicly, emphasizing its commitment to continuing its core mission of making computer science education accessible to all students.

Context of the Decision

The workforce reduction reflects broader challenges facing educational nonprofits that experienced rapid growth during the pandemic's digital learning surge. Code.org's decision stems from a strategic reassessment of its operational structure following a period of expanded programming and increased staffing between 2020 and 2024.

Industry sources indicate that educational technology organizations have struggled with funding sustainability as corporate donors redirect resources toward artificial intelligence initiatives and other emerging technologies. The shift has particularly impacted organizations focused on traditional computer science curriculum development, forcing many to streamline operations.

Code.org's leadership cited the need to align staffing levels with current funding realities while maintaining the quality of its educational programs. The organization has been working to diversify its revenue streams beyond traditional tech industry partnerships, but these efforts have not yet offset declining contributions from major corporate sponsors.

Impact on Operations

The layoffs primarily affected Code.org's curriculum development and regional partnership teams, according to internal communications. The organization's core Hour of Code program and CS Fundamentals curriculum will continue unchanged, but some specialized initiatives may face delays or consolidation.

Several positions in the organization's professional development division were eliminated, potentially impacting teacher training programs in select regions. Code.org's data and research team also saw reductions, though the organization maintains that its ability to track student engagement and learning outcomes remains intact.

The Seattle headquarters bore the majority of the cuts, with some remote positions across various states also affected. Code.org has indicated that remaining staff will absorb certain responsibilities to maintain continuity in key programs serving over 70 million students globally.

Company Financial Background

Founded in 2013 by tech entrepreneurs Hadi and Ali Partovi, Code.org has raised over $200 million from major technology companies, foundations, and individual donors. The organization's funding model relies heavily on multi-year commitments from corporate partners including Microsoft, Amazon, and Google.

Recent financial pressures have emerged as several major donors reduced their education-focused giving in favor of AI research and development initiatives. Code.org's annual budget of approximately $50 million has remained relatively stable, but the organization has struggled to secure new major donors to replace those shifting priorities.

The nonprofit's financial sustainability has been further challenged by increased competition for education funding as more organizations enter the computer science education space. This competitive landscape has made it more difficult to secure the large-scale donations that previously fueled Code.org's rapid expansion.

Industry Outlook

The Code.org layoffs reflect broader consolidation trends in the educational technology sector, where organizations are reassessing growth strategies implemented during the pandemic's remote learning boom. Similar workforce reductions have occurred at other education-focused nonprofits as funding patterns normalize.

The computer science education field continues to show strong demand from schools and students, but organizations serving this market face pressure to demonstrate measurable impact and cost-effectiveness. Many educational nonprofits are pivoting toward more targeted, sustainable programming models rather than pursuing rapid scale.

Industry analysts suggest that organizations like Code.org may need to develop more diversified funding strategies, including fee-for-service models and government partnerships, to reduce dependence on volatile corporate philanthropy.

Conclusion

Despite the workforce reduction, Code.org remains committed to its mission of expanding computer science education access across diverse student populations. The organization views these layoffs as a necessary step toward building a more sustainable operational model that can weather funding fluctuations while maintaining program quality.

The restructuring positions Code.org to focus on its most impactful initiatives while developing new revenue streams to support long-term growth. As the organization adapts to changing market conditions, its ability to maintain educational quality while achieving financial stability will determine its continued influence in computer science education advocacy.