Zenith cut $30m in salaries. This was a figure they have been chasing all year, a deficit. However, they are adding back in a significant portion of that savings in new positions and promotions. Which no one is tracking from a financial modeling perspective. As far as the previous poster stating that spring enrollments are light, that is quite kind. Ground operations will miss March by a significant junk, equating to $9.6m for the year. That does not take into account Wyo and online. The consolidations will creat short term revenue solves, but do not solve for long term population growth. Any financial model that is being used to assess this change is flawed. They do not even know when students will transfer.
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Don't kid yourself, we here in finance are trying to run spreadsheets and financial models as quickly as we can to demonstrate to the new CFO we need to stay around for a long time to manage this complex business with multiple moving parts. You ever hear the old joke that goes like this: " how many analysts working from home does it take to manage no revenue and a healthy loss on the bottom line? ". Answer from finance guys: " a ton, and let me show you the pivot table my team and I created to illustrate it for you". " as a mater of fact on line 798 ,column AAFFD, , it clearly shows we are under staffed"
We need revenue, and thus far nothing we have tried has netted success We are practically giving away Wyo Wreck and we have scholarshipped every Neverest student we can, and yet we still have to reduce bodies to try and meet a dollar number. With no plan to fill the buildings, the past will be the future, well until there isn't one. Mary even an education company needs an acquisition strategy, got one from the mid west?
Signed the Cap'n
The guys in finance are probably considering getting rid of each and every faculty. That way the projections will look even better!
The restructuring will not solve the low enrollment problem, in fact it will produce lower enrollment. Zenith cannot appease the DOE and the guidelines set forth without the enrollment decreasing. By eliminating the targeted advertising, telemarketing and high pressure recruiting they're eliminating 50% of the customer base. Things will only get worse before it gets better. It's the right thing to do and will make for more successful graduates, but it will come with the cost of more downsizing. When Zenith took over in February 2015 there were 33,000 students, today there are less than 15,000 students.
The loss this year will be 100 million or more. Not bad considering last year was 250 zillion .
"We have yet to solve for revenue, and nothing we have tried has worked", sighed the leader.