ACT to lay off 106 employees by July 1

IOWA CITY — The Iowa City-based education testing company ACT will be laying off 106 employees by July 1.

The company filed the required layoff notice with the state this month. It also disclosed it is in the process of selling more of the properties on its campus just off Scott Boulevard in east Iowa City.

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Janet Godwin, ACT’s chief executive officer, said the impending layoffs are "strategic, tough and timely decisions that affected team members in our technology center.“

“Education and workforce development environments are shifting dramatically, and ACT’s stakeholders are demanding more from us to help learners prepare for success after high school,” she said in an email to The Gazette.

“Our industry is undergoing large-scale, rapid changes such as increased demand for online offerings, requiring organizations like ACT to adapt rapidly if they are to grow and continue to fulfill their mission.

“ACT is strong and positioned to lead through these changes," Godwin stated.

Godwin added that technology is critical to the company being able to deliver innovative, high-quality programs and services with speed and consistency.

"With the changes announced this week, we are moving to a technology model that will help us better meet the evolving needs of students and learners, and the educators who serve them,“ she said.

“The changes will allow for increased efficiency and greater flexibility in line with the rapid evolution of technology and will bring ACT to the forefront of competitive market changes and rising stakeholder expectations."

Company buildings

The company, Godwin said, is seeking to sell its main campus, which has buildings on 93 acres, because of changes in how employees work, with many choosing to work remotely from home.

ACT, she added, is "exploring a variety of options for supporting our staff in new modes of work. … ACT’s priority is finding the right fit for the property’s future."

Nearly a year ago, the Iowa City Community School District bought the Tyler Building on the ACT campus for $8.7 million to use as space for professional development of educators, the district’s online learning program and possibly career and technical education.

ACT had recently invested $7 million in a new roof, HVAC improvements, lighting upgrades and a new fire alarm system for the 85,000-finished-square-foot building. It also left behind an estimated $2 million worth of “first-class” office furniture for the school district.

“ACT has a long history of being a good community partner in Iowa City, and this arrangement is one more way for us to remain connected to our community,” Godwin, a former Iowa City school board member, said at the time.

Looking to the future, Godwin said ACT intends to "keep a significant presence in the Iowa City area, including office space downtown, where we are recognized by community members for our continuing commitment to the Eastern Iowa Corridor.“