British education company Pearson (PSO) said on Friday that it is taking steps to cut cost, launching a strategic review, and is putting its U.S. school publishing unit up for sale. The announcement sent its stock higher, shares were up 12.25% to $9.44 this morning.
"[The] U.S. K12 courseware publishing business has seen a slow pace of digital adoption in basal courseware, high capital intensity and a challenging competitive and market environment," the company said.
Pearson is looking to restore its earnings growth by cutting $388 million a year by 2020.
"We are creating a leaner Pearson, equipped to innovate and win in digital education. The measures we are announcing today build on the work completed last year and will allow us to further simplify our portfolio, reduce costs and accelerate our digital transformation," Pearson CEO John Fallon said.