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Career Education announces campus closures, workforce reductions

The company said the decision was made to close twenty-three campuses. These campuses are expected to contribute approximately $124.3M of revenue and approximately $62.0M of operating loss for the year ending December 31, 2012. The campuses will remain open to offer current students the ability to complete their course of study. The majority of these campuses are expected to cease operations no later than the first quarter of 2014. Along with these closures, the company made the decision to eliminate approximately 900 positions across the organization as it reorganizes its campus and corporate functions to better align with the current student population and common operating structures across our ground campuses, most notably within our Career Schools. The position eliminations are expected to be completed by January 2013, with annual savings estimated at $45M-$55M. The fourth quarter operating results will include a pretax severance charge of approximately $7.0M as a result of this decision.