A theory on the recent layoffs

My wife just proposed an interesting theory on the irrational, reckless, devastating layoffs we just suffered. As we were trying desperately to make sense of it and figure out what the strategy must be, she suggested the most rational possibility that anyone has yet mentioned. I just want to get your thoughts on this.

She thinks that the reason for the sudden and irreparable obliteration of our faculty resources has something to do with the pending FTC or Dept. of Ed. suits. It has been stated by financial analysts that if any part of those suits turns out to be true, it could bankrupt the company. My wife thinks that DeVry is making a last-ditch effort to cut costs in anticipation of losing the case, since doing so could cost us literally everything.

I'm no expert on business, finance, or law, but this seems plausible to me, especially in the total absence of any other plausible explanation for these actions. What are your thoughts?

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Y did we pay so much for the money laundering program?

Your wife could be right. If you recall that after it was announced DV had purchased an anti-money laundry certificate program (?) two analysts from Credit Suisse announced they were downgrading DeVry's stock. The reason was that the university had overpaid for the business and that seriously depleted DeVry's cash reserves, putting it in dire straits when it came time to pay the fine the FTC would levy. WHEN is the operative term here. DeVry is going to settle, and the layoffs are part of the white flag-we surrender- process. It's cash strapped and unloading salaries is the fastest way they can remedy the situation. Given the fact that people tossed over the side represent(no offense meant) those instrumental in DeVry's past successes as well as those who could play are part in the university's future , not to mention online and onsite personnel, does suggest random and irrational behavior at the management level. But, if an investigation were to reveal that the layoffs have not touched the Keller Grad School, that might suggest DeVry is actually being strategic here...cutting its losses in order to save what has become it's more well regarded operation.

She could be. Depends on how much we have to pay out. Enrollment is down too at the local campuses.

I think your wife is right. Devry needs to cut corners anywhere it can to pay for a settlement with ftc and other lawsuits

Thread regarding DeVry Inc. layoffs

A theory on the recent layoffs

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