EDMC lays off 40 in Pittsburgh
Education Management Corp. laid off about 40 employees in Pittsburgh on Tuesday, as sagging enrollment continues to pressure earnings at the nation's second-biggest operator of for-profit post-secondary schools.
The layoffs occur less than a week after the company reported a 96 percent plunge in earnings for the October-December quarter and told Wall Street analysts it is focused on reducing costs. Most of the cuts did not involve faculty, said EDMC spokesman Chris Hardman.
“Unfortunately, we made the difficult decision today to eliminate approximately 40 positions in Pittsburgh,” Hardman said. “The changes are part of an overall strategy to invest in the areas directly related to student achievement.”
The company has about 23,000 employees across the United States, including about 2,200 in Pittsburgh.
EDMC laid off several hundred employees in October as the result of declining student enrollment and a sluggish economy.
In its most recent quarter, the Downtown-based company said net income fell to $1.1 million, or 1 cent a share, compared with $31.1 million, or 25 cents a share, a year ago. Revenue fell 9.3 percent to $593.7 million, with enrollment declining 6.5 percent.
CEO Edward H. West told analysts in a conference call after the earnings release that the company expected total cost reduction of $100 million to $125 million for the year ending June 30, up $25 million from its previous estimate.
Bill Zlatos is a Trib Total Media staff writer. He can be reached him at 412-320-7828 or firstname.lastname@example.org.
Show commenting policy
TribLive commenting policy
You are solely responsible for your comments and by using TribLive.com you agree to our Terms of Service.
We moderate comments. Our goal is to provide substantive commentary for a general readership. By screening submissions, we provide a space where readers can share intelligent and informed commentary that enhances the quality of our news and information.
While most comments will be posted if they are on-topic and not abusive, moderating decisions are subjective. We will make them as carefully and consistently as we can. Because of the volume of reader comments, we cannot review individual moderation decisions with readers.
We value thoughtful comments representing a range of views that make their point quickly and politely. We make an effort to protect discussions from repeated comments either by the same reader or different readers.
We follow the same standards for taste as the daily newspaper. A few things we won't tolerate: personal attacks, obscenity, vulgarity, profanity (including expletives and letters followed by dashes), commercial promotion, impersonations, incoherence, proselytizing and SHOUTING. Don't include URLs to Web sites.
We do not edit comments. They are either approved or deleted. We reserve the right to edit a comment that is quoted or excerpted in an article. In this case, we may fix spelling and punctuation.
We welcome strong opinions and criticism of our work, but we don't want comments to become bogged down with discussions of our policies and we will moderate accordingly.
We appreciate it when readers and people quoted in articles or blog posts point out errors of fact or emphasis and will investigate all assertions. But these suggestions should be sent via e-mail. To avoid distracting other readers, we won't publish comments that suggest a correction. Instead, corrections will be made in a blog post or in an article.
- Google Maps opens business doors to online views for shoppers
- Many in Pennsylvania can still get benefit of Affordable Care Act
- United tries to woo fliers with upgraded food options
- In 10 years as public company, Google has reshaped IPO landscape, more
- Economic indicator rises 0.9% in July
- Back-to-school season deals just a click away with new services, apps
- 5 apps that make you say ‘wow’
- Airline group forecasts uptick in Labor Day travel
- Honda recalls Fits to improve their crash resistance
- Few homeowners expected to benefit from Bank of America’s $16.65B settlement
- Family Dollar rejects Dollar General offer