I do not think we are going to hear of massive losses on the next Cengage investor call. Rather, I am pretty sure this has been the plan all along.
In August, during the last investor call, they reported stable to moderately down revenues. And then they look ahead by stating (on the slideshow): "Cost efficiencies expected to deliver strong recovery in EBITDA and margin expansion on broadly stable revenue outlook"
These reductions in expenditures were mentioned twice verbally during that call. Seems like their plan all along has been to deliver "growth" through shrinkage. It is a scheme they have pulled before and I would not be at all surprised if this wasn't the case again, this time around.