Apollo Group Inc., the largest U.S. for-profit college chain, has seen a 59 percent decline in the value of its stock since the beginning of the year, making it the worst-performing stock in the Standard & Poor’s 500 Index.
The company announced Wednesday it will be closing 25 campuses and 90 learning centers and cutting about 800 jobs.
“We’re positioning ourselves to be more nimble, more competitive and more successful for all of our stakeholders in Apollo,” Chief Executive Officer Greg Cappelli was quoted as saying in Bloomberg BusinessWeek (http://www.bloomberg.com/news/2012-10-17/apollo-group-falls-most-in-two-years-on-sales-forecast.html).
After the closings, which are to be completed next year, the University of Phoenix will be left with a nationwide network of 112 locations and a physical presence in 36 states, the District of Columbia and Puerto Rico.
Students affected by the closings will have the option of transferring to the university’s online classes (about three-quarters of its students are online.) Students are now being notified of the changes, and a hot line has been set up at (866) 992-3302 for those with questions.