Capella Education (CPLA) to Trim non-Faculty Workforce 4%
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Capella Education Company (Nasdaq: CPLA), announced a targeted workforce reduction in line with its 2012 strategy to extend its brand and increase learner success. Capella faculty will not be directly impacted by this change.
"We are transitioning to a new brand-driven marketing strategy which is less reliant on third party marketing efforts. This shift has left us with excess capacity in specific frontline areas and the need to recalibrate marketing skills to fit our new model,” said Kevin Gilligan, chairman and chief executive officer of Capella Education Company. “Additionally, as we moved through our planning process for 2012, we identified opportunities to increase organizational efficiency. Today’s actions will allow us to make key strategic investments going forward in both our brand strategy and learner success efforts.”
“The faculty and staff at Capella share a deep commitment to the success of our learners. While today’s actions are difficult, we would not take them if we did not believe they were in the best long-term interest of our ability to serve our learners,” Gilligan concluded.
The company expects to eliminate approximately 65 positions representing about 4% of its non-faculty workforce, resulting in a charge of about $1.4 million in the quarter ending Dec. 31, 2011, and an annualized cost savings of approximately $5.5 million.
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"We are transitioning to a new brand-driven marketing strategy which is less reliant on third party marketing efforts. This shift has left us with excess capacity in specific frontline areas and the need to recalibrate marketing skills to fit our new model,” said Kevin Gilligan, chairman and chief executive officer of Capella Education Company. “Additionally, as we moved through our planning process for 2012, we identified opportunities to increase organizational efficiency. Today’s actions will allow us to make key strategic investments going forward in both our brand strategy and learner success efforts.”
“The faculty and staff at Capella share a deep commitment to the success of our learners. While today’s actions are difficult, we would not take them if we did not believe they were in the best long-term interest of our ability to serve our learners,” Gilligan concluded.
The company expects to eliminate approximately 65 positions representing about 4% of its non-faculty workforce, resulting in a charge of about $1.4 million in the quarter ending Dec. 31, 2011, and an annualized cost savings of approximately $5.5 million.
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