Few days back, University of Phoenix announced that it is launching a campaign to help students acquire the skills they need to get placed in good companies the times when jobs are scarce.

Ironically, the new not-so-surprising decision will ultimately result in about 800 employees losing their jobs and 13,000 students will be adversely affected.

Apollo Group Inc., the company which owns the university has announced that it would be closing down 115 campuses across the country, including 90 resource centers and 25 primary campuses.

The decision has not come out of the blue. It is reflective of the trend that students and parents are refusing to put in money on a for-profit college degree. Hence, in recent months the total enrolment of students in such institution is decreasing.

As Indianapolis Business Journal points out, stocks of Apollo Group Inc., the largest for-profit college chain in U.S, have dropped more than 59 percent on the year, making it the worst-performing stock in the Standard & Poor's 500 Index.

Students wish to see their degrees having a minimum guarantee value which they do not see among for-profit colleges, who charge exorbitant tuition fee but when it comes to securing jobs, these students are on the same plane with other students who did not go to a private for-profit schools.

As students and parents are apprehensive about investing money in higher education, the for-profit institutions such as the University of Phoenix are in a dire state.

Hence, the Apollo group made the decision of cutting costs by closing down campuses and issuing employees pink slip. It has a set a goal of cutting $300-million in costs by 2014.

Due to the closure, 13,000 students will have to make alternative arrangements. But, they do have the option of shifting to online courses at the university. In fact, 75 percent of the students at the University of Phoenix are pursuing online degrees.

After the closures, which is expected to be completed by the end of this year, the university will be left with a nationwide network of 112 locations and a physical presence in 36 states, the District of Columbia and Puerto Rico, reports News Channel5.com.

The university has refused to release the list of all the 115 campuses being shuttered until all the students and employees are notified about the news of closure.