CORRECT: Apollo Group Confirms It Has Cut 700 Full-Time Positions
November 29 2010 - 7:01PM
Dow Jones News
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
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