ACT, Inc., an Iowa-based nonprofit provider of college admission testing-related services, announced layoffs on Wednesday, February 28. The provider of the ACT test, the company layoffs will affect 100 positions across its entire organization; the number of those ACT job cuts affecting its head office have not been stated. The company has stated that these cuts are a part of ACT’s organizational realignment efforts.
“These moves are being made to ensure we have the right capabilities as we reprioritize our work,” said Marten Roorda, ACT’s Chief Executive Officer. “We are focusing on the outcomes most essential to fully realizing our transformation to a learning company, which means ending work that is not aligned to our strategic direction.”
The company’s total workforce is about 1,200, including 950 employees who work at various sites around Iowa City. The company as said that depending on the positions, the timeline of the job cuts may vary. Further, affected employees will receive severance packages “that exceed industry norms,” and will also be offered with outplacement services and additional assistance for the transition to new positions.
“We continue to make investments and create new positions that enable us to achieve our mission,” Roorda said. “Though the staffing changes announced today are difficult, they are necessary to ensure ACT remains a thriving, successful organization and employer in the coming decades.”
More Layoffs at ACT in 2018
Back in April 2016, employees were informed that operations at the McCarrel Center in Iowa City would close by 2018 due to outsourcing; the facility is used for paper-based testing, which is currently on the decline. Rather than investing in paper-based testing, ACT, Inc. plans to invest more into digital platforms.
The outsourcing is set to result in additional ACT job cuts in 2018, with approximately 60 positions at the company’s location at 2727 Scott Boulevard being affected.
As for the actual ACT test, company layoffs should not impact any testing itself, as the company remains financially stable.
“ACT to cut 100 jobs companywide,” Iowa City Press-Citizen, February 28, 2018.
“ACT to cut 100 jobs,” The Gazette, February 28, 2018.
“ACT to close McCarrel Center by 2018, affecting 60 Iowa City jobs,” Iowa Press-Citizen, April 27, 2016.