It is pure and simply people. Apollo Education was purchased by Apollo Global management for the acquisition of the international education organizations and the growth potential not the University of Phoenix. It is and may prove to be a very good deal. Recent activities to separate Global Management from Apollo Education but with the international activities remaining with Global Management is one of the final steps in this plan. Once the separation is complete, then the University of Phoenix can be sold whole or piecemeal to interested parties. In the meantime, Apollo Management with make UoPX as profitable as possible through Cuts not reinvesting in technologies or infrastructure. More evidence is the consolidation of workers to the Riverpointe campus, the numerous new workarounds instead of updating processing programs or enrollment computer programs and the beginning of mid-management layoffs. Please reply with what you think is happening?
4 replies (most recent on top)
Absolutely there is a taint on former UoP employees in the job market! I was laid off recently (relatively speaking), and out of the 7 interviews I have had, three of them made open and sarcastic remarks about UoP. For example, at an interview for teaching position I was asked, "So...have you ever taught at a real school?" The other two literally made fun of the school and brought up how shows like the Simpsons, Arrested Development that made fun of it. It was awkward to say the least. Lately I have changed my resume to read that I worked for Apollo Education Group instead of University of Phoenix, and so far that has worked in that I have not had to deal with such comments and the interviews lately have been positive and encouraging.
Last post- you did a great job summarizing what is most likely true regarding private equity and making a profit on selling UOPX. I agree, current, long term employees have a serious blemish to a potential new employer- they might wonder what negative culture and habits they would bring with them, and also, why they haven't left a negative institution at this point- laziness or lack of transferable skill?
We just completed campus remodels. I realize this had already been budgeted in the previous years, so the $ were already allocated. Most campus operations are being centralized. This is an efficiency and control measure but also likely to be the precursor to a lot of small campuses being phased out. There aren't likely to be more investments. UOP will become leaner for sure. Attractiveness to a new buyer requires it. Look at Kaplan as an example. UOP still has another 10 years left in it to accommodate current students; many of whom are on the 7 year plan. The new owners did not purchase UOP to transform it; rather to wring out whatever profitability they could. UOP acts like a business, not a university, so this should not be surprising. And even in academia, institutions do sell of under-performing assets. A few years ago, a small school in my region sold its law school to another university. It does happen. My guess is they have already begun shopping. If they were serious about turning this institution around then they would be exhibiting very different behavior. Growth requires investment, not divestiture. If I was still at UOP I would be looking for a job in earnest. I do wonder if there is a taint on UOP employees in the job market? What do you think?
my guess, UOPX will be sold to competitor, thus no need for upgrades in technologies, courses, people etc...maybe someone like Laureate or an overseas company wanting to grow? When and if that happens, very few people will be needed?? what do think???