Jan 25 (Reuters) – U.S. for-profit education company Education Management Corp is evaluating options at its online operations, including job cuts, due to a weak economy and changing regulations, a company spokeswoman told Reuters.
The company told employees on Tuesday that it has begun an evaluation of the Online Higher Education unit, company spokeswoman Jacki Muller said in an emailed statement.
“This evaluation will include careful consideration of all options, including the possibility of some staff reductions,” Muller said.
The online higher education unit oversees the online operations of all of EDMC’s education institutions.
The company, which runs the Art Institutes, Argosy University and Brown Mackie Colleges, had forecast a tough 2012 due to lower student enrollments. It offers on-campus and online courses and has over 151,200 students.
The entire for-profit education industry has been experiencing a drop in enrollments as tough new rules from the U.S. government forced them to tighten admission standards, or risk losing federal aid.
“Although the company continues to experience a demand for its academic programs, like most colleges and universities a number of factors such as the economy and a changing regulatory landscape have contributed to the need for this review,” Muller said.
EDMC is expected to report second-quarter results on Feb. 2.
Shares of EDMC were up 1 percent at $25.90 in morning trade on Wednesday on the Nasdaq.
