Thread regarding DeVry Inc. layoffs

DeVry's "Transformation Strategy" includes staff reductions, 8 additional campus closings, larger classes, smaller advertising spend

Revenue at DeVry University decreased 20.8%, or $25.1 million, to $95.7 million in the first quarter of fiscal year 2018 compared to the year-ago quarter as a result of decreases in undergraduate and graduate enrollment.

DeVry University enrollment declines have reduced revenue by approximately 50% since fiscal year 2014.

New student enrollment declines will continue to drive down total student enrollment, which will result in revenue declines on the magnitude of the percentage declines in total students. To address the issue of declining enrollment,

DeVry University is focused on implementing management’s transformation strategy, which includes both near-term actions to stabilize enrollments and maintain positive economics and longer-term investments to increase competitiveness and differentiation.

In response, management has focused on increasing cost efficiencies and has reduced costs by approximately 50% over this time period through the following methods:

Management made the decision to close or consolidate certain DeVry University campuses while balancing the potential impact on enrollment and student satisfaction. Since the beginning of fiscal year 2014, DeVry University has closed 40 campus locations and completed additional campus size reductions. This resulted in fiscal year 2017 facility costs that were approximately $34 million, which is 46% lower compared to fiscal year 2014.

As of the commencement of the September 2017 session, DeVry University operates 59 locations and management continues to evaluate campus performance. In September 2017, DeVry University management announced the closure of eight additional campus locations to be completed in early calendar year 2018.

Management has made the decision to sell the DeVry University owned facility in Pomona, California, and is intending to remain in this market in a smaller leased space. Management is also currently renegotiating leases in several other markets to reduce space and lower future operating costs.

Optimizing course scheduling to better utilize classrooms and faculty and simplifying program offerings. The average class size at DeVry University has increased from historical levels of 17 students to 21.9 students in the September 2017 session.

Adjusting staffing and management structure within DeVry University. Total full-time faculty and administrative headcount at DeVry University decreased from 2,595 in fiscal year 2014 to 1,101 in fiscal year 2017. Direct cost of instruction labor costs were approximately $160 million, or 61%, lower in fiscal year 2017 compared to fiscal year 2014. This process of adjusting staffing costs will continue in the near-term as management continually evaluates staffing needs based on enrollment trends. This may result in future staff reductions as well as management realignment. Adtalem home office administration costs have also been reduced and will continue to be evaluated based on the need to support a smaller DeVry University organization. Home office costs allocated to DeVry University declined approximately 16% in the first quarter of fiscal year 2018 compared to the year-ago quarter.

Managing advertising expenditures. In fiscal year 2017, management reduced advertising expense by approximately $19 million, or 15%, compared to the prior year. Advertising expense declined by approximately 20%, or $7 million, in the first quarter of fiscal year 2018 compared to the year-ago quarter and is expected to decline throughout fiscal year 2018 but at a slower rate.

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it is hard to understand how the HLC accreditation still holds

..it's a lot easier to understand if you know where HLC collects its fees from.

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"The average class size at DeVry University has increased from historical levels of 17 students to 21.9 students in the September 2017 session." This is a lie. The average online class size is now 45 and is expected to rise to 60 in the next session. With 60 students and only 1 instructor, it is hard to understand how the HLC accreditation still holds.

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Dude give me a whiskey sour and a $500 jackpot any day!

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I stand corrected on the bingo. No, I don't live in the middle of nowhere--I'm in a city where bingo doesn't seem to exist at all anymore. More power to you folks if you enjoy it. One thing that you are right about is that I haven't put my head up from the computer all day...I should be grading but I have just been applying for jobs all day to get the hell out of DeVry!

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I live in the Northeast and Bingo is very popular. Many Catholic churches have it to raise money and other places have it too. The people who go LOVE it.

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She had to have known that for awhile unless she was truly that delusional. She wasnt a newbie to Devry when she got hired to the top position. They are just slowly admitting it out loud because they can probably no longer hide the problems. You can only layoff so many before you are no longer functional and that is where this school is going.

And to the other poster, we have bingo halls here too. People love to gamble and there is actually some big money in some of those places. Either you live in the middle of nowhere or you haven't bothered to look up from your phone or laptop to see the world around you.

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LW saying there is no silver bullet for DV is a pretty striking admission given the way these earnings report go. I think they have officially admitted that they expect DV to be liquidated and working under that assumption. What will be the next big "Bold" step ? Making DV online plus one? Having two management teams one for online and one for the residual onsite detritus of devry? just guessing..

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Uh, okay. That's pretty disturbing, actually. Do you have a lot of shuffleboard tables and bocce courts also?

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Don't know where you live, but we have several bingo halls here and they are constantly full every night with people of all ages.

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Bingo halls?!? What century are you from? Even the Baby Boomers don't play bingo. Are you the person complaining about vagabonds and charlatains in the other thread? DeVry is stuck in the 1990s, not the 1930s. Grunge-themed coffee houses that sell flannel shirts would be more appropriate. And for the record the classrooms are too small to use as dance studios.

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So they got rid of 58% of their staff, to better serve students. What other improvements will be made? Why not turn the chain into dance studios, or bingo halls?

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So what does lead to a decent education? How about cramming 400 students into a large lecture hall at an R1 where they will never actually meet the teacher, and having students be graded by graduate assistants who are more concerned about publishing research papers than about actual instruction and many of the students are hung-over from binge drinking the night before, if they show up at all? Is that a great deal for $200,000 and a lifetime of crushing debt for someone in their 20s? Yes you get a better brand name on your resume, but the top research schools are shams for different reasons. At least at DeVry you actually get to spend time with a real professor if you take an onsite class. Yes, that's a big if these days. But the price is going down compared to what other schools are charging now.

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More information about DeVry from the Adtalem Earnings Call. Looks like the losses at DeVry have gotten worse:

Segment operating loss, excluding the special items was $13.3 million in the quarter compared to a loss of $6.9 million in the prior year.

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If you think Carrington can do it? I don't support for profit schools because the focus is on profits not the students. There is no getting away from that. Traditional schools have their problems but wringing a profit out of the disenfranchised + the government is not going to lead to a decent education.

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Carrington revenue decreased 13.1%, or $4.9 million, to $32.1 million in the first quarter of fiscal year 2018 compared to the year-ago quarter, driven by declining enrollment. Enrollment declines are the result of changing demand for career education given low unemployment, rising wages and increased competition. To improve enrollment results, management is focused on bringing relevant programs to serve areas of the workforce where supply and demand imbalances exist.

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I don't support DeVry because I think it's a swindle where the students pay the price but if I were them, I would revamp and Increase my advertising to keep the name, whatever it's called now out there.

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