EDMC to let 100 go
Education Management Corp. will let go as many as 100 employees in Phoenix in its second round of layoffs this year, as its stock tumbled on Monday to its lowest level of the year.
Education Managment will consolidate and redeploy about 200 jobs across EDMC Online Higher Education in Phoenix, “resulting in a net reduction of approximately 75-100 employees,” said spokeswoman Jacquelyn Muller.
In January, the company announced the layoffs of 330 workers in Arizona and 70 in the Strip District.
The Downtown-based company owns the Art Institute of Pittsburgh among its 106 schools in the United States and Canada.
Muller said the latest move would allow the company to invest more broadly in initiatives “directly related to academic quality, student support and student services, and to ensure an increased focus on efficient use of organizational structure.”
Asked about the potential for more layoffs, EDMC spokesman Jay McCaffrey said: “I can't comment on any speculation.”
Education Management faces a lawsuit in federal court contending that it bilked the government out of more than $11 billion in student grants and loans since 2003. The Justice Department accuses EDMC of violating a ban on paying college recruiters according to the number of students they recruit.
The company's stock closed Monday at $4.87 a share. That's down 82.6 percent over the past year. McCaffrey declined to comment on the decline.
Next to the Apollo Group, which owns the University of Phoenix, EDMC is the second largest for-profit educator of students in higher education. Its 25,000 teachers and staff serve 130,000 students.
Revenue for the third quarter of fiscal 2012 increased to $682 million, while profit dropped to $26.9 million from $34.6 million during the same period last year.
Bill Zlatos is a staff writer for Trib Total Media. He can be reached at 412-320-7828 or email@example.com.