Tuesday, January 24, 2012

Internal memo confirms: layoffs on the horizon at EDMC

Posted on Tue, Jan 24, 2012 at 6:02 PM

As we reported earlier today, employees at for-profit educator EDMC were told this morning to brace for potential layoffs by the week's end. Late this afternoon, an e-mail following up on those meetings was sent out to staff by John Kline, the President of EDMC's Online Higher Education division. City Paper has obtained a copy of the e-mail, which asserts that EDMC must "become a more streamlined and efficient organization."

The e-mail only cites layoffs as a "possibility." But while previous economy measures sought to "reduce expenses without impacting our employee base," it continues, "the overall results have fallen short of our goals."

Citing a need to "better position ourselves for success within the current economic and regulatory environments going forward," the e-mail asserts that EDMC's leaders are seeking to "review all aspects of the business" through "an extensive and deliberative process" ... which it expects to have completed "within the week."

The full text of that e-mail is below:

Most of you have spent part of your day today in meetings with senior leaders learning about the future direction of our organization. This message serves to reinforce what was discussed in the meetings and to inform those that were not able to attend a meeting.

We take great pride in delivering high quality outcomes for our students, while ensuring compliance with the standards placed on our organization. We also are driven to create opportunity for staff success and to help our committed and hard working employees reach their goals both inside and outside of EDMC.

Our ability to continue to grow and meet the outcomes described above, depends in part on becoming a more streamlined and efficient organization. To this end, throughout the current fiscal year, we have implemented a number of actions to reduce expenses without impacting our employee base. While these actions have helped, the overall results have fallen short of our goals.

Your leadership team has already begun an evaluation of our entire business in an effort to improve our overall performance and better position ourselves for success within the current economic and regulatory environments going forward.

This evaluation will include a careful consideration of all options, including the possibility of reducing the number of staff currently employed and planned new hires in the future.

We have formed committees to review all aspects of the business. This will be an extensive and deliberative process with every effort made to carefully consider the needs of our students and the complexity of our organization. This process is expected to conclude within the week, and I will keep you updated regarding the outcomes of this process. Our employees are the most valuable asset we have and why we have been so deliberate in this exercise.

I thank you for your hard work and commitment to our students.


John Kline


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