Zovio reports enrollment challenges at U of Arizona Global Campus – Higher Ed Dive

Dive Brief:

• Zovio, a for-profit college operator turned educational services company, has encountered several hurdles in helping the new University of Arizona Global Campus establish its brand, resulting in enrollment challenges at the institution.
• The company sold Ashford University to the University of Arizona last year and became the resulting online college’s educational services provider. But the brand recognition Ashford enjoyed with the military hasn’t transferred to UA Global Campus, and its geographic mix of students has shifted, Zovio officials told analysts Wednesday.
• Zovio also lowered its revenue forecast for 2021 and announced it is laying off around 65 employees as part of an effort to save $40 million.

Dive Insight:
The University of Arizona inked a deal with Zovio last year to acquire Ashford, along with its faculty and staff members, to create a new online college. The resulting institution, UA Global Campus, signed a 15-year agreement with Zovio to pay the company the direct costs for a range of services, including marketing and technology support, plus 19.5% of its tuition and fee revenue.

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