EDMC Announcement - Thoughts?? - post regarding Education Management Corporation layoffs

EDMC Announcement - Thoughts??

Good Afternoon,

For more than 100 years, post-secondary institutions owned by Education Management Corporation have served the educational needs of students across the country. We proudly provide very talented and dedicated students with the opportunity to pursue their dreams and passion in a wide range of areas of study. We are able to do so due to the commitment of our faculty and staff who provide a great learning environment so our students can take their talents into society and build meaningful lives. With almost a half a million alumni across the country, it is clear that we have been very successful.

Today, I am pleased to reveal a further step in the evolution of educational excellence with the announcement of an agreement to sell substantially all of the assets of EDMC, including the Center, corporate offices, all faculty and staff at Argosy University (including Western State College of Law), “core” Art Institutes not currently in teach-out and South University to Dream Center Foundation (DCF), a not-for-profit foundation.

After careful consideration and examination of the best strategic direction for our schools and programs over the next decade, the Board of Directors and I came to the conclusion that the best way to ensure continued classroom excellence and student success was to enter into this transaction.

This deal aligns our organization and goals with the realities of the education environment in which we operate today. Our schools will exist as a not-for-profit, stand-alone entity owned by DCF, offering our campuses and students the chance to educate and learn in an environment divorced from the challenges of the for-profit sector.

The new organization is subject to several operational and other closing conditions and is also subject to the receipt of a number of regulatory approvals, but it is expected to be completed by late summer 2017.

I am very aware that a transaction such as this raises anxiety and that you will have questions. We commit to trying to answer each and every question you may have. I will start right away and embark on a two-week tour to hold town halls to talk about this fantastic opportunity and answer your questions.

This is a terrific and very positive step toward continuing to build on our success. It is truly a reflection on all of you and your unwavering commitment to educating our students, who remain our number-one priority throughout this transition.

Regards,

Mark

Mark McEachen

President and Chief Executive Officer

Education Management Corporation

Comment! It's anonymous!

63 replies (most recent on top)

Change seems to be difficult for most people but from what people are stating about EDMC, it sounds like a change was needed. The Dream Center is not a cult, it is a company run chiefly by the Barnetts, I believe. Yes they are Christian. This country was founded on Christianity. 90% of the founding father's were pastors and 100% were Christian. Times change and America has changed. There are a lot more atheists, Muslims, People who subscribe to Eastern religions, people who believe in God, in a general sense but don't know the Holy Bible and are not 'Believers' in the traditional sense. Is that bad or good? Both, but it always comes down to the individuals and to what extent they have integrity. The statements made previously may be true but there sure was a lot of negativity, pessimism, cynicism and jaded MoFo's. Why don't we remain hopeful, have some faith, maintain a positive attitude and put it in perspective. Educationally, you get out of a school what you put into it. I went to five different universities: Colorado State, San Diego State, USC, Cal State LA and the California School of Professional Psychology-Los Angeles and I found that school is school. The majority of how one does as a professional has to do with who they are as individual's, their attitude, how hard they work and their natural affinity prior to entering any school. Most of the learning of any profession takes place on the job over a period of years. If one takes it seriously and loves what they do, they will excel. My bet is, everything will be ok, so; 'Don't Take It Personal' and 'Don't Trip'. 'Trust The Process', do the best u can and expect success. Whether it comes from philosophy, pop psychology, business school or wherever; it was stated first in Scripture. Lay People call it, the Law of Attraction. Stay Positive. Love & Respect, Richie Cole

As a former employee, I must agree with several posts.....as things went bad all the upper management could do was blame the instructors......constant scrutiny and lack of resources made the instructors jobs not only difficult but unrewarding....so much time was spent filling out paperwork and taking needless online training on topics that had nothing to do with classroom work, only discouraged instructors that were constantly being asked to take time out and sit in front of a computer on their own time with no compensation....unfortunately many good instructors left and this hurt the students.

Trust me ....Edmc needed to go and so glad it sunk. Employees this is blessing and you will be better off when it's over. These people destroyed education, tax payers , students lives and made it hard for their own employees to sleep at night.

EDMC just completed another reduction in force in June 2017 ahead of the close of sale in August to The Dream Center Foundation. With the skeleton staff that's left, good luck to Dream Center. Feel sorry for the students, they are getting diminished services for the top dollar they pay to attend. Sad considering it was once a great place to work and go to school.

Is it true that all Ai will be closed by Dec 2017?

I love this McEachen quote from the Post Gazette:

Mr. McEachen said the Dream Center Foundation had an “expertise, experience and passion that we didn’t see anywhere else — and frankly we can’t bring.”

So after ALL THE YEARS that EDMC has been running Ai, they just now decided they can't do a good job at it. Nice.

http://www.post-gazette.com/business/career-workplace/2017/03/03/EDMC-sale/stories/201703030038

They just had a huge RIF and let go some wonderful people. The school hasn't been what it once was in a long time. Just really a sad situation. It once was a great place to work, but the last few years it has not been.

I've taught for the Art Institute on ground or online for nearly 18 years, the last 3 years it became moonlighting for another job...so I was a little out of touch with just how shambolic its all gone! We used to do a great job (circa 2001-2009)! But after the implosion in the larger economy Goldman Sachs and cronies s---ed the life - energy and money out of the schools. Vampires. At the same time making faculty life miserable with extra weird scrutiny (that didn't promote learning or retention) while giving hardly any classes,

The Dream Center is a cult, students and faculty are just royally f---ed.

Here's a thought: The current EDMC bought fine institutions such as the Florida School of Psychology and the University of Sarasota which started the School of Psychology. This is how they got graduate and advanced degree granting authority. UofS had a national, sterling reputation with its school of psychology and its College of Education. When bought by EDMC it had around 2000-2500 students nationally. Today the entire school has a few hundred students.

Point: EDMC took over colleges and universities and had no idea how to run them. No idea of certification on those levels or how to maintain quality students. As I read about the Dream Center Foundation, I see the same pattern. Their expertise is NOT in college or university management. I fear for the students and what will become of them, their education and their money and the money of the tax payers of this country.

I urge you to read the other comments from other "blogs" as they sound like sour grapes but are actually the truth told by those who lived through the unethical management of the "cost centers."

By the way, the Fed DOE condones bonus pay for these so called "administrators."

Interesting reading! some points to ponder:

WILL THE STUDENTS BE BETTER OFF WITH ANY CHANGE? CERTAINLY WOULD BE DIFFICULT TO GET ANY WORSE FOR THE STUDENTS WHO ARE PAYING TIER ONE PRICES TO A NON RANKED SCHOOL.

When the current group bought the REAL EDMC, which had an excellent national reputation, the stock was around $46.00 a share more or less. The current regime lost its position on Wall Street and he last time I checked, EDMC stock was around .8 cents per share...should tell you all you need to know about the current group and its management skills. Oh, let's not forget the 95 million dollar settlement with the Fed.

Under current regime, student population has consistently decreased.

Under current regime, property was sold off.

As some of you have stated, the "Dream" Center Foundation, non-profit or not would have to go farther than the current regime to lower expectations from an employees view:

While faculty and support staff who dealt directly with students were fired by the hundreds about twice a year for the last several years, local "presidents", VPAA's, Financial Aid, and student services were given bonuses on a regular basis under the guise of the "Executive Committee." "President's" (and I use the term loosly...Presidents answer to Boards, at EDMC they answer to Vice-Presidents...again, tells you all you need to know, are hired for their potential to sell, not for their potential to run an educational institution without a loss. Some presidents can not confer degrees at graduation due to the fact they are not credentialed highly enough to award a degree which is higher than their own.

Educational entity? I know of one "president" who got her job because she owed a favor and just happened to have a good sales record...

Will the hundreds of millions of dollars taken from the "cost centers" monthly to pay for bonuses and salaries of a bloated bureaucracy be stopped and will the new ownership keep the money in the area as they have stated in their press release?

Will the new ownership release the "presidents" and "VPAA's" who carried out the bilking of the students' tuition money for their own gain, clean out the nest??? Will qualified administration both academically and administratively, be put into place to clean the mess of the past 16 plus years of what would arguably be called fraud by many.

Does the 95 million dollar "settlement" go with the sale?

I can go on and on but you get the idea. I know non-profits can be run just like for-profits with full compliance within the rules of the non-profit laws, but I am willing to watch to see if the new owners will be any different. At this point I know little or nothing about them.

Another point: I do not see anything about the Psychology School being sold. It is not a part of Argosy University and is very profitable.

Many of us know where the bodies are buried and I am sure no one will ask and no amount of due diligence will uncover where all the bodies are buried (and there are thousands), nor will it expose the incredibly low morale.

The EDMC swamp needs more than draining. It needs to be drained, filled and cemented with rods.

Maybe the Christians will do drug testing since half the staff are drug users with high income

Hopefully they get rid of the high pay employees who don't do a thing for the company and everyone makes $15 an hour like every other University. Have fun watching this ship sink now.

Just think of all the loan possibilities:

The homeless
Mentally ill
Substance abusers
Youth offenders with sealed records
Mentally challenged

This sale really opens up a whole new demographic to provide that quality education we've been offering for the last 100 years.

Different pool hall, same hustlers.

Dream Center Foundation is faith based and not for-profit, can I get a Hallelujah!?

Is this a deep hidden subsidiary of KKR?

Time will tell how this will play out. I hope it goes well for everyone and that students and staff can finally breathe a sigh of relief that this awful chapter is finally over.

Keep open the schools and have the present employees reapply for their jobs.

Laudy Jesus how pathetic!

When do we find out we all have to reinterview so that pay can be cut? It's good news in the long run for the schools but typically when a business is sold, the new parent company cleans house of leadership. Hopefully the Pittsburgh side of things stays in place.

Well this is awful. Religions don't pay taxes, I wonder if this will happen here. Non profits aren't subject to gainful employment so lending of federal money will continue. The education was good for a long time so it's good that isn't going away, but please, please only enroll qualified students and conservative Christian organizations have the same right as everyone else to own things, but I'm of the belief they are crazy and destructive. I could be wrong. I can't imagine anything worse than the EDMC crowd though. Will that corporation go on in some form? To my friends still working there I hope this makes working conditions better for you. You've been through hell. And to former students I hope you get your loans forgiven be recruiters were repeatedly threatened and coerced into signing unqualified candidates and forced to omit the truth or face disciplinary action.

Wow! All of you must be a joy to live with. "This gold is only 18 karats", "sure I won the lottery but now I got higher taxes", "with a name like Claus surely santa is a nazi". As always you can take a job elsewhere or at a minimum stop posting fake news.

The epitaph on a negative person’s headstone should read, ‘I expected this.’

Actually, it is DTF and DCF. Either way, acronyms.

Man, oh, man... So many of EDMCs employees are not going to fit in with this whole religious cult employer thing... On account of the adultery. Though DTF and TDF are remarkably similar, the shady money stuff is likely the only acceptable F-ing of people that will be done by The Dream Foundation.

Workers of the world unite!-for once already!

All the town hall smoke up the sphincter drivel will not pay the bills or take care of your families and cocaine habits.

Time to lose the denial and grab the hard drives and call 1-800 sold down the river Jordan.

Welcome to Scientology's side kick.

Guys... stop this stuff. Choked on my oatmeal when laughing.

Seems simple enough, not-for-profits are not subject to gainful employment and other regulations.

Who would work for this sham company? Seriously, is everyone left working for these places felons, liars, or zombies? Clean up your criminal records and get off the meds and then get better jobs.

HAHAHAHAHAHA! Sold to a cult. WTF.

secular:

adjective

of or relating to worldly things or to things that are not regarded as religious, spiritual, or sacred; temporal:

secular interests.

not pertaining to or connected with religion (opposed to sacred ):

secular music.

we are already secular, dumb a--!

Sukulard

Y'all got s---ulard!!! Ha ha!

This doesn't sound like the kind of group that does "secular"

Ha Ha.... now we get to say.... told ya so weasels!

this one is good as well:

facilitating a GED so that same"pentcostal" group of bushwackers can sell them on loans.

Maybe we should all call our new employer at DFC:

Call Center/Prayer Request Line: (213) 273-7100

We are gonna need those prayers to make it through this!

this made my day @emk

This is an exit strategy worthy of the shape- shifter himself.

We should start a thread with that as a subject line

This is an exit stategy worthy of the shape- shifter himself.

Becoming a non-profit has become a common red herring move in the for -profit industry. So be it and buyer beware.

What makes this move so disgusting is that it institutionalizes in the name of Christia piety a scheme to convince the down and

out of the world of the necessity of first

facilitating a GED so that same"pentcostal"

group of bushwackers can sell them on loans.

Will the deception and dishonesty in all its endless forms ever stop?

I don't know about you, but I tend to like my own personal Jesus straight up thank you.

Feeding the hungry and providing shelter to the homeless is

"The article states that the schools will remain nonsecular."

Secular, you mean?

Does this mean EDMC is no more? Is this a pre-bankruptcy thing?? What does this mean for corporate??

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EDMC Announcement - Thoughts??

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