EDMC announces more layoffs
The cuts keep happening at Education Management Corp.
The for-profit education company announced 170 layoffs throughout the organization on Thursday, two days after it cut 80 workers in Green Tree and the Strip District.
Of the 250 total job losses this week, 110 people in Pittsburgh were affected, the company said. The cuts are part of the Downtown-based company's efforts to control costs as it battles declining enrollments and profits.
“It is part of the efforts to offer students a great learning experience while keeping education affordable,” EDMC spokesman Chris Hardman said.
Hardman declined to discuss whether additional layoffs were coming.
Since last year, the company has slashed more than 600 workers nationwide, nearly half of them in Pittsburgh.
EDMC had 23,000 employees as of last summer, with 2,000 in Pittsburgh, and serves 125,000 students across 110 campuses, according to its 2013 annual report.
EDMC is headed for a third consecutive year of revenue declines and struggling under $1.3 billion in debt. It is a defendant in a federal lawsuit accusing EDMC of paying recruiters according to the number of students they enrolled, violating federal law, and stands to lose hundreds of millions of dollars if a judge rules against it.
Other for-profit education companies are struggling. University of Phoenix and Corinthian Colleges have faced similar allegations of improper recruiting and marketing practices. Corinthian said it may have to shut down, because the Education Department restricted access to federal funds over concerns about its marketing. The company has since reached a deal with regulators to keep operating while it sells and closes some schools.
Trace Urdan, an analyst at Wells Fargo Securities, said Corinthian did not act quickly enough to cut costs, a lesson that EDMC appears to have learned.
“What you see is Education Management doing something that Corinthian never did do,” Urdan said. “I think Education Management is a much better operated company — and the cost cuts, they can't afford to wait any longer on those, unfortunately.”
Chris Fleisher is a staff writer for Trib Total Media.
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.
- Electric versions of Asian rickshaw paves their way into U.S. market
- Cheap oil can hurt economy
- Wal-Mart presses meat, egg suppliers on antibiotics, animal treatment
- Nicholson Construction of S. Fayette holds firm on holding things firm
- Shareholder vote causes ATI to review executive pay packages
- 5 battles the ’16 Camaro needs to win
- Truck ducts keep blowing out hot air
- Look for 1st rate hike this year, Yellen says
- Low price sparks sales run
- Consumer prices rose in April for 3rd straight month
- Parent of Lane Bryant, Justice to buy owner of Ann Taylor for $2B