Education Management Eyes Layoffs in Online Business Unit

Article excerpt

Education Management Corp. is considering layoffs at its online education business in the Strip District, amid federal scrutiny of its business practices and a challenging financial environment for for-profit schools, the Downtown company said on Tuesday.

Managers at the Online Higher Education unit told workers yesterday morning the company is evaluating the business "in an effort to better position the organization for success within the current economic and changing regulatory environments," said spokeswoman Jacki Muller.

Potential cut-backs "include all options, including the possibility of some staff reductions," she said, declining to project numbers.

The online business unit employed about 1,700 people in the Strip District last spring. Muller could not immediately say how many work there currently.

Education Management is the nation's second-largest operator of for-profit schools, with 106 schools in 32 states, plus Canada. Those schools, which include the Art Institute of Pittsburgh, had combined enrollment of about 151,200 students as of October 2011. …