“Given our lower average student population and current utilization rates, we continue to make appropriate, yet difficult choices. These choices allow UTI to operate as cost effectively and efficiently as possible, without compromising the quality of our training and customer service,” said President and CEO, Kimberly McWaters.
“We continue to see progress on our key initiatives and evidence of economic trends that have historically supported UTI’s growth, such as increases in unemployment and downward pressure on interest rates. However, the business impact of our progress and these economic trends is yet to be realized. This, in combination with our capacity to improve operating efficiency, necessitates these actions.”
The reduction in force is expected to provide a cost savings in fiscal 2008 of approximately $10.7 million to $11.4 million. These cost savings are expected to be substantially offset by investments in marketing, student financing alternatives and the outsourcing of certain student financial aid processing.
Sales management restructuring
Robert Adler will assume the role of Vice President, Campus Admissions, reporting to President and CEO Kimberly McWaters. Adler joined Universal Technical Institute in May 2006 as Campus President of its Norwood, Massachusetts campus where he greatly improved operational performance and student satisfaction. His most recent position with UTI was as Campus President of the Avondale, Arizona campus.
Prior to joining UTI, Adler held multiple positions with the University of Phoenix (UOP), with student recruitment responsibilities, both domestically and internationally. In his Vice President role at UOP, Adler oversaw a number of campuses in Massachusetts, significantly improving their sales performance through high levels of collaboration across marketing, admissions and campus operations. Prior to that, Adler had responsibility for directing and managing UOP’s expansion into the Asia Pacific market, successfully opening 10 learning centers in Japan, South Korea and Guam.
In addition, Adler’s management of multiple regions for PepsiCo-Pizza Hut, resulted in, on average, double digit annual increases in sales over a 10 year span. Adler holds a bachelors degree in Business Administration and an MBA from the University of Phoenix.
As part of its sales management restructuring, Senior Vice President, Campus Admissions, David Miller and Vice Presidents, Campus Admissions, Shawn Alexander and John Palumbo, have left the company. September 30, 2007.
“Although Dave, Shawn and John have contributed greatly to the development of the existing campus sales process in their years with UTI, I am convinced that new ideas and perspectives, as well as renewed energy and focus, are needed to achieve our desired results, said McWaters.
“The campus admissions team and sales model are critical to our overall business strategy and future success. Bob’s proven leadership and track record for success will significantly support UTI’s continued implementation of our new marketing and sales strategies. These strategies are designed to capitalize on changing market dynamics and student profiles, specifically adult career changers and prospective students in local campus markets.”
Michael Romano will assume the position of Campus President at the Avondale, Arizona facility. Romano joined Universal Technical Institute in 2006 as the Education Director for the Avondale campus. Prior to joining UTI, Romano served as a Product Manager for the Ridge Tool Company. Romano is a 1992 graduate of Motorcycle Mechanics Institute and holds a bachelors degree in Mechanical Engineering from the Fenn School of Engineering at ClevelandState as well as an MBA from Baldwin Wallace College.