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There are various reports about full-time, on-campus MBA programs closing its doors, and also reports about applications dropping steeply.

For example, in summarizing from a 2018 report [PDF]:

Applications in the United States are down 6.6 percent -- while they are growing in Asia, Canada and Europe.

–"M.B.A. Applications Drop (Except Outside the U.S.)", (2018-10-08)

Why is this happening?

Even the top business schools such as Harvard and Stanford are seeing declines over the last several years.

Demand is counter-cyclical. During recessions, demand rises as people seek additional training, hoping to prepare for new careers. But US unemployment is currently at only 3.6%. We haven't seen unemployment that low in decades, so people are not feeling the pressure to seek additional training for new careers.

Here are some references that describe this counter-cyclical behavior of applications to graduate school.

Ilana Kowarski, "Fewer People Are Applying to U.S. Business Schools", US News, Nov 5, 2018

From a U.S. domestic prospective, historically, U.S. business school
application volume has run countercyclical to the economy," Basye
wrote in an email. "In times of higher unemployment or job loss,
people often go back to school. In times of full employment or high
GDP growth – like right now – opportunity costs are higher to leave a
job and return to school.

Jade Scipioni, "Harvard, Stanford, other top MBA schools see applications drop", Fox Business, October 1, 2018

Sangeet Chowfla, president and CEO at GMAC, notes that historically
business school application volume have often run counter cyclical to
current economic trends and indicators. And the current low
unemployment rate means “young professionals have an increased
opportunity cost of leaving their jobs in pursuit of an advanced
degree,” Chowfla said.

Wendi Go, "Is Enrollment into Graduate School Affected by the Business Cycle?", Department of Economics, Stanford, May 11, 2009

The findings show that the effect of the business cycle on First-time
First-professional enrollment follows a relatively consistent
counter-cyclical pattern. More specifically, a 1% increase in
employment growth is associated with a 4.09% decrease in enrollment,
while a 1% increase in GDP growth corresponds to a 2.04% decrease in
First-time First-professional enrollment. Finally, 1% increases in
personal income growth and personal disposable income growth are
associated with 1.68% and 1.30% decreases in First-time
First-professional enrollment respectively.

Srikant Datar, David A. Garvin, Patrick G. Cullen, "Rethinking the MBA: Business Education at a Crossroads", Harvard Business Press, April 22, 2010

Because MBA programs are often viewed by young people, especially
those with few other career options, as a safe harbor for weathering
economic storms, business school applications have historically been
countercyclical.

I would know nothing about this issue except for the link that BrianH provided in a comment to an Inside Higher Ed article. I found it quite interesting; here are the top perceived reasons for the fall in admissions from a survey of admissions officials at 150 MBA programs:

• International students are "concerned about the current political climate" in the U.S.: 31 percent.


• The strong job market in the U.S.: 30 percent.


• The cost of an M.B.A.: 17 percent.


• Questions about the value of the M.B.A.: 13 percent.


• The lack of one-year M.B.A. programs in the United States: 7 percent.


• The perception that fewer jobs require an MBA than in years past: 3 percent.

Regarding the top reason in that list, the very last line of that article has what I think is an important qualifying detail:

A study by the Graduate Management Admission Council found declines in
application volume for M.B.A. programs but gains for those in Asia,
Canada and Europe.

Here's a link to the article on that specific topic, titled, "M.B.A. Applications Drop (Except Outside the U.S.)".