Thursday, October 18, 2012
University of Phoenix Makes Major Cuts; Shuts Down 115 Campuses
The Apollo Group, which owns Phoenix, the nation's largest for-profit college, announced on Tuesday that it was slashing $300-million in costs, largely by closing 115 campuses and other locations. While those campuses serve only about 4 percent of the university's students, they represent about 40 percent of its square footage, according to the First Analysis Securities Corporation.
Apollo also announced that it was cutting 800 positions, about 5 percent of its work force.
Enrollments are dropping:
The number of new students at the University of Phoenix fell nearly 14 percent in the fourth quarter of the fiscal year that ended on August 31, as did overall enrollment. Students seeking an associate degree declined by nearly a quarter, the company reported.
Those figures are worse than many analysts had predicted, and add to the 19-percent drop in enrollments that the University of Phoenix suffered in the previous fiscal year.
Expert opinion blames the drop on the sluggish economy.
While students flocked to for-profit colleges at the beginning of the economic downturn, they are reluctant to spend more money on their education until they are more certain that there will be jobs waiting for them, he said.
You can read more here. We wonder what this development suggests about the future of proprietary law schools.