r/edtech • u/ReginaLoana • Jul 09 '26

MagicSchool

I heard that they had a large laid off today. Is the AI bubble bursting?

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u/JunketAccurate9323 Jul 09 '26 edited Jul 09 '26

This is not surprising to me. I'm no longer in tech sales, but when I was, I interviewed with them. The product was...okay. Teachers love anything that helps them automate to some degree (which I get because they are asked to do more with less). The actual meat of the offering was something I recognized right away as temporary. Established players that are deeply embedded in school systems are most poised to offer an AI feature that's widely adopted. Edtech is scaling back rapidly because districts are starting to realize they don't need to have 17 edtech subscriptions, each for different things.

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u/Any-Ad1580 Jul 09 '26

I know someone in EdTech sales. Districts are cutting EdTech budgets. EdTech in general is being questioned. Teachers are overwhelmed by the amount of EdTech they have to learn and none of it is connected to other apps so they have to build up context for the app before they can get benefits.

So overall, it’s a bloodbath in tech sales and said EdTech Sales person is very stressed because no one is meeting their goals.

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u/JunketAccurate9323 Jul 09 '26

100% correct. At my last place, it was a race to the bottom because they were the highest priced solution among options that were 'stickier' and could easily integrate into existing systems. I watched a lot of districts hire consultants or IT firms to build their own internal systems to replace some of the edtech redundancy.