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Capella U works to turn around flagging grades

Once among the hottest startups in town, the online university today is struggling with declining enrollment and new competition. The company's chief exec tells the Star Tribune the school has a new strategy, which includes changes in how it recruits, retains and supports students.
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Once among the hottest startups in town, the online university today is struggling with declining enrollment and new competition. The company's chief exec tells the Star Tribune the school has a new strategy, which includes changes in how it recruits, retains and supports students.

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Related

Capella University will lay off 65 workers

The online school is letting go of about 4 percent of its non-faculty workforce. The company says in a news release that a move away from third-party marketing has left it with excess capacity. The Business Journal reports the company has seen enrollment decline recently.

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Capella Education's net profit plummets 49 percent in third-quarter

Capella Education, the parent company of the for-profit Capella University, says its third-quarter net income was $5.1 million, down nearly 50 percent compared to the $9.9 million it earned in the July-September quarter last year, the Associated Press reports. Even as total enrollment, revenue and net income fell, new student enrollment at the Minneapolis-based provider of online post-secondary education rose 10.5 percent compared to last year -- the first increase in nearly two years, Reuters reports.

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