Colleges and universities across the United States are facing tough financial challenges, forcing leaders to make difficult decisions. Falling student enrollment, uncertainty over federal research and operating funds, rising costs, and the changing needs of students are creating a challenging environment for higher education.September saw a wave of layoffs, program closures, and other budget cuts, affecting both public universities that rely heavily on state funding and some of the wealthiest private institutions with multibillion-dollar endowments. From Ivy League schools to regional colleges, administrators are rethinking staffing, programs, and campus operations as they try to balance budgets without compromising educational quality.
Why universities are cutting jobs and programs
The recent wave of layoffs and budget cuts is driven by a combination of financial pressures, operational challenges, and shifting priorities. One major factor is the increased taxation on university endowments. For example, Yale is preparing for an 8 percent tax on endowment income, which reduces the funds available for operations, research, and faculty support, as reported by the Yale Daily News. Even the wealthiest institutions are feeling the impact, prompting measures such as layoffs, hiring freezes, and delays to infrastructure projects.Federal funding uncertainty is another key challenge. Many universities rely heavily on federal research grants, and reductions or freezes can create significant budget shortfalls. Brown University, for instance, faced a temporary halt in federal research funding during the Trump administration after a dispute over allegations that led to a research funding freeze. The official press release issued by the office of the President at Brown highlighted these budget cuts. Such uncertainties make long-term financial planning difficult and push universities to tighten budgets preemptively.Internal operations also play a role. Inefficiencies, redundant positions, and the need to modernize programs for changing student and technological demands have led institutions like Washington University in St. Louis to restructure staff and resources. Rising operational costs, inflation, and evolving strategic priorities, such as pausing sustainability projects or monetizing non-essential properties, further strain budgets.Taken together, these pressures are forcing universities to adopt a range of cost-cutting measures. Layoffs, elimination of vacant positions, retirement incentives, and reductions in discretionary spending are all strategies used to maintain financial stability while continuing to deliver education and research in an uncertain economic and regulatory environment.
Washington University in St. Louis
Washington University, one of the country’s richest universities, announced it would cut 316 staff positions and close 198 vacant roles, aiming to save more than $52 million annually, as per information released by the university. The cuts include positions across its Medical Campus. In the official release, Chancellor Andrew Martin highlighted the changes reflecting evolving student needs, new technologies, and internal inefficiencies, along with concerns about potential federal research funding reductions. Even with a $12 billion endowment, WashU has joined other top institutions like Johns Hopkins, Northwestern, and Stanford in making significant layoffs.
Brown University
Brown University in Rhode Island is cutting 48 staff positions and eliminating 55 vacant roles, according to information released by the university. Earlier this year, the Ivy League school had already removed roughly 90 mostly vacant positions. The cuts follow a budget deficit and tensions with the Trump administration over federal research funding, including a temporary freeze. To ease the financial strain, Brown plans to sell non-strategic properties, delay some sustainability projects, and focus fundraising on initiatives that have an immediate budget impact. The university’s endowment stands at $7.2 billion.
University of Oregon
The University of Oregon is closing 59 vacant roles and cutting 60 filled positions to address a budget gap of more than $25 million, as reported by The Oregonian. Officials emphasized that no filled tenure-track faculty positions will be lost, and no degree programs will be eliminated.
Berklee College of Music
Berklee College of Music laid off 70 employees, around 3 percent of its workforce, as reported by Boston.com. College leaders cited rising costs, changing enrollment patterns, and national policy shifts. The layoffs affected staff across campuses in Massachusetts, New York, and Spain, but no faculty positions were impacted.
Southern Oregon University
After declaring financial exigency in July, Southern Oregon University in Ashland is cutting $10 million in operating costs over four years, as reported by Jefferson Public Radio. About 70 faculty and staff positions will be affected, and 10 majors—including chemistry and mathematics—along with a dozen minors, will be discontinued.
University of Arizona
The University of Arizona is eliminating 43 positions after the federal government removed funding for the Supplemental Nutrition Assistance Program, which had provided around $6 million annually for educational services, as reported by The Arizona Daily Star. These cuts come on top of broader cost reductions following the university’s effort to close a $177 million deficit discovered in late 2023.
University of Louisiana at Lafayette
The University of Louisiana at Lafayette is tackling a $25 million budget shortfall by cutting six jobs and closing the Office of Sustainability and Community Engagement, as reported by The Acadiana Advocate. Most divisions are required to reduce operational costs by 10 percent, and officials have already identified $15 million in savings.
Cuyahoga Community College
Following new state requirements, Cuyahoga Community College is cutting 30 low-enrollment associate degree programs, including courses in advanced manufacturing and creative arts, as reported by Signal Cleveland. Several apprenticeship programs will also be phased out.
East Carolina University
East Carolina University plans to trim $25 million from its budget over three years, implementing permanent reductions, adjustments to academic programs, and organizational changes, as reported by The Triangle Business Journal. The exact number of layoffs has not been disclosed.
Yale University
As mentioned before, Yale University is offering retirement incentives to faculty while preparing for an 8 percent endowment tax, as reported by Yale Daily News. The university is also delaying major construction projects, citing higher taxes and uncertainty over federal funding as key concerns.Across the country, even the wealthiest and most prestigious universities are feeling the strain. From staff layoffs to program closures, cost-cutting has become a central strategy as higher education institutions try to stay financially stable in a challenging and uncertain environment.
