Career Education to cut 900 jobs, close 23 campuses
Career Education announced Thursday that it is cutting 900 jobs and closing 23 campuses as it continues to battle with declining enrollment.
The Schaumburg-based for-profit education provider reported the cuts when it released its third-quarter loss of $33.1 million. Last year the company posted a $10.6 million profit during the same quarter. Third-quarter revenue dropped 22 percent to $332.8 million from $428.4 million.
"We are taking the difficult step of closing campuses and reducing our workforce because these measures are essential to advancing the turnaround of Career Education," chairman, president and CEO Steven H. Lesnik said in a release.
The Schaumburg headquarters will be effected, but details on exactly how were not released.
All campuses and offices nationwide will be impacted, said Mark D. Spencer, senior director of corporate communications at Career Education.
"A key component to the company's long-term strategy is to invest in a smaller number of institutions that have the strongest likelihood of delivering strong student outcomes, operational efficiency and strength in their market," a company release stated.
The job cuts are expected to take place by January 2013, with an annual savings of between $45 and $55 million, the release said.