Corinthian to cut more jobs as enrollment declines
Sept 19 (Reuters) - Corinthian Colleges Inc is cutting 325 jobs, or about 2 percent of its workforce, adding to the job cuts announced earlier this year as it battles dropping student enrollments, a company spokesman told Reuters.
Corinthian, which runs a chain of for-profit colleges and employs about 16,600 people, had said earlier this year it would cut 4 percent of its workforce and hold off growth plans.
"Like many other private-sector education organizations, we have recently experienced a decline in student enrollment and we are adjusting our workforce to reflect this change," said Corinthian spokesman Kent Jenkins.
The job cuts are across the company and not just enrollment counsellors, he said.
For-profit colleges are seeing a decline in student enrollment due to the changes they have made in their operations to comply with new U.S. government rules that aim to lower student debt loads and improve graduation rates.
Market leader Apollo Group , Strayer Education , Washginton Post's Kaplan unit, along with Corinthian, are all seeing slowing revenue and profit growth.
In August, Corinthian, which runs the Everest, Heald and WyoTech campuses, said it expects new student enrollments to fall by up to a fourth in the first quarter.
Corinthian's shares were down almost 8 percent to $2.01 on Monday on Nasdaq. (Reporting by A. Ananthalakshmi in Bangalore; Editing by Saumyadeb Chakrabarty) (firstname.lastname@example.org; within US +1 646 223 8780; outside U.S +91 80 4135 5800; Reuters Messaging: email@example.com)
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