Marten Roorda who presided over ACT for four and a half years, last week stepped down as CEO.
Like its main competitor College Board, which administers the SAT, ACT has been experiencing major challenges this year, with test centers closed on account of the coronavirus pandemic and colleges all over the country waiving the standardized exams.
Under Roorda's leadership, ACT has been acquiring and investing in ventures that innovate in the field of educational technology. Its recent acquisitions include startups that develop online instructional platforms, adaptive learning technologies, student assessments and more, thanks to its profitable operations (ACT generated about $305 million in pure profit in 2018).
Unfortunately, in the midst of the pandemic, the outlook is that ACT is unlikely to pursue more purchases for the time being. The nonprofit organization will likely have to undergo cost-cutting measures to survive the seismic changes the industry is going through. It is no secret that a significant chunk of its revenues is the ACT test. Among the likely measures, according to the official announcement, are reducing the testing center capacity, pausing pay raises for employees, and reducing fringe benefits. The staff of the Iowa City-based company, about 1100 employees, have been offered voluntary options to reduce work hours, take leaves of absence or resign and receive severance.
The interim CEO, Janet Godwin, who has been with ACT since 1990, says there have been no involuntary layoffs or furloughs for now, although further cost reductions are possible.
