Crises Engulfing Pearson Deepens, Expects Gloom in U.S.

The transcript discusses Pearson's challenges in the US higher education market, including a significant decline in textbook sales and enrollment. Leadership credibility is questioned due to repeated profit outlook changes. Pearson considers selling its stake in Penguin Random House and plans to adapt by expanding into the rental market and increasing digital offerings. The company aims to shift its US higher education business to 75% digital by 2020, amidst competition from companies like Amazon.

What were the initial expectations of Pearson executives regarding college enrollments?

How much did textbook sales decline according to the text?

What significant change did Pearson's CEO, John Fallon, have to make regarding profit outlooks?

What strategy is Pearson considering to adapt to the changing market?

What is Pearson's goal for the digital side of their business by 2020?