Business

Outsourcing at ACT leads to 23 job cuts

The layoffs are related to an announcement ACT made two years ago

The entrance to the ACT campus in Iowa City on Thursday, Jun. 1, 2017. (Stephen Mally/The Gazette)
The entrance to the ACT campus in Iowa City on Thursday, Jun. 1, 2017. (Stephen Mally/The Gazette)

ACT will eliminate 23 jobs in Iowa City as part of an outsourcing effort the company first announced two years ago.

In April 2016, the Iowa City-based educational testing company said it would outsource some work done in ACT’s McCarrel Center, 2727 Scott Blvd. At the time, the company estimated about 60 employees would be affected.

That number fell to 23, though, after ACT continued to evaluate the effect of the outsourcing, and some employees left ACT or found different positions in the company, spokesman Ed Colby said in an email Tuesday.

The outsourced work at the McCarrel Center included delivery of paper-based testing, such as distribution and printing, he said. ACT still is using the building and it currently houses test administration employees.

The final day for the 23 affected employees will be Aug. 31. ACT will provide those employees with severance packages, Colby said.

Those cuts are unrelated to an announcement ACT made earlier this year that it would eliminate about 100 jobs across the company. Colby said ACT was not releasing more information about that announcement.

l Comments: (319) 398-8366; matthew.patane@thegazette.com

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