Education Management Corp. announces cost-cutting layoffs
June 29, 2013 12:10 am
By Patricia Sabatini / Pittsburgh Post-Gazette
Education Management Corp., the struggling Downtown-based operator of the Art Institutes, including the Art Institute of Pittsburgh, laid off an unspecified number of employees in its corporate service group this week in a cost-cutting move.
"The economic climate over the last several years, combined with changes in federal student loan availability, has significantly impacted our schools," spokesman Mark Toth said in an email Friday.
As a result, the for-profit schools operator was forced to cut "less than 10 percent" of the corporate services unit to reallocate resources, he said. He declined to elaborate.
On Thursday, the company announced the resignation of vice president, controller and chief accounting officer Randall J. Killeen. Mr. Killeen was named acting CFO in August.
His departure follows the announcement last week that the president of the Art Institutes division since 2005, John Mazzoni, would be stepping down. Charles Restivo, group vice president, was appointed interim president while the company searches for a permanent successor.
In March, EDMC disclosed that the U.S. Securities and Exchange Commission was investigating the company's accounting practices.
Patricia Sabatini: psabatini@post-gazette.com or 412-263-3066.
First Published June 29, 2013 12:00 am