Job losses at IDP Education Pty Ltd of around six per cent of the global workforce are being blamed on a reduction in the size of the international student market due to restrictive policy environments in key destination countries. In a Regulatory and Market Update to its investors today, IDP also predicts that the international education market will decline by 20-25 per cent over the next twelve months.
In the Update, IDP also reports that student placement and IELTS testing volumes have been negatively impacted during H2 FY24, due to government policy changes in IDP’s key destination markets of Australia, the UK and Canada.
Overall, for FY24, IDP expects a 15-20 per cent increase in student placement volumes and a 15-20 per cent decline in IELTS volumes versus FY23. This would mean that student placement revenues will be larger than English language testing revenues for the second year running.
Even if there are no further changes in immigration and visa policy settings, IDP expects a contraction in the size of the international education market over the next twelve months “due to supply side constraints”.
However, IDP reassures investors that it “remains well positioned to take advantage of the increasing industry focus on quality to further strengthen its leadership position”.
The Update outlines how it intends to respond to the market changes:
- Market share – IDP is seeking to increase its market share in student placement services, with a focus on quality and the unique services that IDP provides.
- Product innovation – Product development across student placement and IELTS business lines will be the focus for strategic growth.
- Cost reduction – Implementing a cost reduction program to align expenses to the near-term revenue outlook. This includes adjusting the operating structure which will lead to a reduction in IDP’s global team.
IDP is also optimistic: “IDP believes the long-dated structural growth drivers that underpin the economic and social importance of the international education industry, and immigration more broadly, will underpin the market’s long-term growth trajectory.”
TKN hopes IDP is right. In the short term, though, should the government continue to pursue its policy agenda to reduce the number of international students in Australia, IDP’s job losses are likely to be a sign of things to come.
The media statement from an IDP spokesperson is as follows:
The changes to government policies regarding international students in the UK, Canada and Australia are impacting the size of the international education market.
In response to these changing market conditions, IDP is adjusting our operating structure, which may see us reduce our global team by approximately six per cent.
We are working through what this means for our global teams. Our priority, as always, is the well-being of our people and our customers.
IDP is the global leader in our sector. With over 50 years of experience, our strategic vision and commitment to quality have enabled IDP to remain the global leader through similar periods of market volatility.
We will remain steadfast in our mission to help more international students and test-takers achieve their global goals.
