The NZ Correspondence school is justifying their current "re-structuring" on the fact that the distance learning now only makes up about 1000 of their 20,000-odd clients.
This is yet another example of the business model of management being applied inappropriately where the service model applies.
The correspondence school exists because there was a need for a service for "distance learning clients" (= pupils who don't have any other choices).
The rest of their clientele are largely people with other options; but because they are in the majority, and therefore are a lucrative "revenue stream", they take precedence.