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5 years old - APOLLO GROUP TO LAY OFF UP TO 700?
According to Barron's, a Phoenix-based radio station is reporting that Apollo Group (APOL), is planning to file documents
with the Securities and Exchange Commission outlining a restructuring plan. Apollo owns the University of Phoenix, the
country's largest for-profit education company. According to "unnamed sources" who spoke with the radio station, the layoffs
could total upwards of 700 employees. The for-profit education sector has come under fire recently by Congress and
The Education Trust, as Washington-based think tank, for targeting low-income and minority students and leaving them
with high student debt levels and dim job prospects after graduation. Congress has proposed limiting government aid to
for-profit colleges based on the default rate of student loans it guarantees. Some for-profit colleges, government aid
represents as much as 90% of their revenue, representing a "de-facto" entitlement program. The lay-offs by Apollo group
are expected as it attempts to reduce as expenses on par with the expected reduction in student enrollment, and
revenue once the government's new rules take effect. According to the 8-K which the company subsequently filed:
Today, our principal subsidiary, University of Phoenix, implemented a strategic reduction in force in which it eliminated
approximately 700 full-time positions, principally among admissions personnel. We expect to incur charges of
approximately $5 million in the quarter ending November 30, 2010 in connection with this reduction in employment, and
we expect to realize related employee compensation expense reductions of approximately $8 million per quarter,
commencing in the second quarter of fiscal year 2011. The personnel reductions are designed to streamline our
operations and to better align our operations with our business strategy, refined business model and outlook.
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Hey dumbass that article is 5 years old