Career Education to cut about 600 jobs

Career Education Corp., which operates more than 90 for-profit college campuses, said it will reduce its U.S. workforce by 7 percent, or about 600 full-time positions.

The company is streamlining its operations due to slowing student enrollment at for-profit colleges, it said in a statement. Career Education, based in Hoffman Estates, said it expects to take a charge of up to $8 million related to severance and other costs in the fourth quarter.

Enrollment is declining at for-profit colleges after the U.S. Education Department increased restrictions on recruiting and the U.S. Senate held hearings questioning graduates' debt levels and career prospects.

Phoenix-based Apollo Group Inc., operator of University of Phoenix, the biggest for-profit college by enrollment, on Jan. 10 reported a 42 percent decrease in the number of new students signing up for classes from a year earlier.

Career Education shares fell 45 cents, or 2.1 percent, at 4:29 p.m New York time in Nasdaq Stock Market trading.