EDMC lays off 40 in Pittsburgh
By Bill Zlatos
Published: Tuesday, Feb. 18, 2014, 5:06 p.m.
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 email@example.com.
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