PHOENIX -- Universal Technical Institute, Inc. (UTI), has announced it is eliminating 70 positions nationwide effective today. Following this reduction in workforce, UTI’s nationwide headcount is approximately 2,400 employees.

"These actions, while extremely difficult, are essential to UTI improving operational effectiveness and efficiencies,” said Kimberly McWaters, president and chief executive officer. “Numerous external and internal factors have led to lower capacity utilization resulting in the need to reduce our operating costs. This workforce reduction is one component of a broader corporate effort to create a more efficient organizational structure. When company-wide initiatives focused on improving capacity utilization are fully realized, the company can build on a more efficient operating structure."

Related severance and outplacement charges of approximately $1.2 million will be included in the results of the fourth quarter ending Sept. 30, 2006. These reductions in force are expected to reduce compensation and related expenses by approximately $4.2 to $4.5 million in fiscal year 2007.