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Martin Moylan
St. Paul, Minn.

Capella announces layoffs in cost-cutting move

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Minneapolis-based Capella Education Corp., which runs the online Capella University, is laying off 65 employees.

The layoffs make up 4 percent of Capella's non-faculty workforce. Company officials said their 1,500 full- and part-time faculty will not be affected.

Spokesperson Mike Buttry said the layoffs come as the company changes its market strategy and cuts back in some areas.

"We're going through a change that we've talked [about] publicly in marketing and our approach to our brand," he said.

Buttry said had Capella had, "excess capacity in specific frontline areas," but did not say which departments would be affected by the cuts. He said that not all of the layoffs will be in Minnesota.

Employees will receive notice of the layoffs over the next two days.

The move is expected to save the company $5.5 million a year.

Earlier this year, Capella cut about 8 percent of its workforce following news of lackluster enrollment projections.