CORRECT: Apollo Group Confirms It Has Cut 700 Full-Time Positions

Apollo Group Inc. (APOL) has cut 700 full-time positions, or about 1.2% of its total company work force, at its University of Phoenix campuses nationwide.

The operator of the nation's largest for-profit college said in a statement that most of the personnel affected were from the admissions department. Apollo and its peers face tough new regulations that could restrict programs' access to federal student financial aid.

Like others in the sector, Apollo has been taking measures to tighten admissions standards and improve student outcomes. The company in September eliminated compensation programs tying recruiters' pay to enrollment metrics and said in its October earnings report that new-student enrollment could fall by more than 40% in the current quarter.

"In recent months, we have accelerated the shift in our approach to student admissions, and have refined our business model," spokesman Manny Rivera said in an emailed statement. "These staffing reductions are intended to better align our operations with these business decisions."

Apollo reported 57,414 employees, including part-time staffers and faculty, on its rolls as of Aug. 31. It had 21,777 full-time employees, nearly three-quarters of whom were at University of Phoenix.

The company notified all affected employees Monday, Rivera said, and the cuts were effective immediately.

The news was earlier reported by Phoenix radio station KTAR, citing unnamed sources.

Apollo said in a Securities and Exchange Commission filing late Monday that it expects to book $5 million of charges in its fiscal first quarter, ending Tuesday, but will begin to see $8 million in related cost reductions beginning in its fiscal second quarter.

-By Melissa Korn, Dow Jones Newswires; 212-416-2271; melissa.korn@dowjones.com

Apollo Education Group, Inc. (NASDAQ:APOL)
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