Business

ACT to set voluntary resignations; future cost-cutting measures loom

Iowa City test company to provide no pay raises next year

ACT Inc. of Iowa City (The Gazette)
ACT Inc. of Iowa City (The Gazette)

Iowa City-based standardized test company ACT will enact a series of cost-cutting measures, including voluntary resignations, the company said Thursday.

Other cost-cutting measures include no pay raises for next year and voluntary hour reductions or leaves of absence.

ACT also said in a statement it will reduce some “fringe benefits.”

Any employee who voluntarily resigns will receive severance pay, the company said.

ACT spokesperson Tarah DeSousa did not comment on whether these cost-cutting measures include any non-voluntary layoffs.

“This is an evolving situation, with various scenarios that we are monitoring closely,” DeSousa said in an email.

ACT also announced future cuts are “expected.”

Further details were not made available.

ACT also announced a change in leadership Thursday. Marten Roorda, chief executive officer, will leave the company. Janet Godwin, chief operating officer, will be the interim CEO.

“ACT does not comment on matters pertaining to personnel,” DeSousa said. “We thank Marten Roorda for his service and vision to transform the organization into one dedicated to advancing learning, measurement and navigation.”

The testing company has about 800 employees in the Corridor and about 1,100 employees total. Most of those employees are eligible for voluntary resignations, DeSousa said.

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ACT had to postpone its national testing date in April because of the coronavirus pandemic and also has seen “a significant decline” in district and state testing programs.

The company will offer testing in June and July, with fewer test locations and with social distancing precautions in place.

Comments: (319) 398-8394; john.steppe@thegazette.com

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