Financial Headwinds Drive More Job Cuts in May

In May, a handful of institutions made deep job cuts as state funding reductions, projected enrollment declines and rising operational costs continued to take their toll.

With a new fiscal year on the horizon, multiple universities announced that they would lay off dozens of employees to reduce projected budget deficits. Others turned to buyouts, hiring freezes, furloughs and other cost-cutting measures. In addition to the commonly cited factors in the cuts, several universities pointed to financial issues exacerbated by the Trump administration’s actions, which have injected uncertainty into federal research funding and international student enrollment.

Here’s the latest on job and program cuts announced last month.

Bowie State University

Despite a recent record fundraising haul of $128.5 million, the historically Black university in Maryland is laying off employees amid an $18 million deficit, The Baltimore Banner reported.

Bowie State plans to cut 79 jobs altogether, according to a message from university officials to the campus community. The plan also includes not filling vacant jobs and departmental reorganization, which could reportedly include merging some units.

“Please know that these decisions are not a reflection of the dedication and excellence you bring to Bowie State each day but rather the result of significant financial challenges that we must address to ensure the university’s long-term viability,” officials wrote.

Loyola University Maryland

The Jesuit college cut more than three dozen jobs last month, The Baltimore Banner reported.

Loyola eliminated 66 jobs due to a $20 million structural deficit. Among the cuts, 29 employees were laid off and another 37 vacant positions were closed.

While Loyola recently touted $32 million in fundraising over the winter, that money is restricted.

Kent State University

Officials at the public university announced plans to lay off up to 45 employees across May as it seeks to cut $18 million in expenses to balance its budget, WOSU Public Media reported.

Kent State officials attributed the projected deficit for fiscal year 2027 to a combination of factors including reduced state funding, inflation and anticipated enrollment declines, including the loss of international students driven by the Trump administration’s efforts to restrict immigration.

Santa Monica College

With a projected $14.7 million budget deficit looming, trustees at the public community college in California approved dozens of layoffs on a 6-to-2 vote at a contentious board meeting last month where members were sharply critical of leadership and one another.

Santa Monica Daily Press reported that the college will cut 45 staff jobs—a mix of custodians, administrative assistants, tutors and other support roles. Despite cutting dozens of jobs, college officials said at the meeting there is “more work to do” to balance expenses with revenues.

Indiana University

Nearly 20 jobs were reportedly cut last month at the public flagship in the Hoosier State.

IU laid off 13 employees in Information Technology Services last month and six more in the Luddy School of Informatics, Computing and Engineering, Indiana Public Media reported.

Officials said that the IT layoffs were driven by a “the need to align our resources with the university’s priorities, support IU’s research and academic enterprise, and ensure the long-term financial sustainability of our work,” while cuts at the Luddy School were part of a restructuring.

Naropa University

The private university in Boulder is laying off 11 faculty members and cutting multiple adjunct positions as part of an effort to reduce a persistent budget deficit, The Daily Camera reported.

The newspaper reported that Naropa’s deficit has held fast at about $2 million since 2020.

While Naropa sold its main campus in 2024 and expects to receive $20 million in proceeds next year as it vacates the property, President Paul Burkhardt wrote in a message to campus that “we must now begin to live within our means by eliminating the structural operating deficit.”

Peninsula College

Jobs and programs are on the chopping block at the public community college in Washington amid a $1.8 million budget shortfall, The Port Townsend & Jefferson County Leader reported.

Peninsula College plans to eliminate 12 jobs through a mix of layoffs, retirements and eliminating vacant positions. The college also plans to furlough staff earning more than $90,000 a year starting next month. Officials pointed to declining state funding—which they said has limited their ability to keep up with inflation—as the reason for cost-cutting measures.

Baldwin Wallace University

Both programs and jobs are being cut at the private university in Ohio.

Baldwin Wallace officials announced last month that they plan to lay off 10 faculty members and eliminate 35 programs in an effort to achieve “financial stability” The Cleveland Scene reported.

The plan, approved by the university’s board last month, will also eliminate 28 undergraduate and seven graduate programs. Majors to be cut include economics, physics and sociology.

University of Utah

Success coaches at the public university are experiencing professional whiplash.

At the beginning of the year, the University of Utah laid off 10 success coaches, only to rehire them shortly thereafter. Now their jobs have again been cut as the university phases out the student success coaching program, The Salt Lake Tribune reported. Officials said the reason for the cuts was that the program model was outdated and ineffective and did not serve as many students as hoped.

Western Michigan University

The public university in the Wolverine State is offering buyouts due to budget challenges.

Western Michigan officials announced last month that the university was offering buyouts to faculty members and academic chairs over 60 years old as part of an effort to save $5 million amid “downward pressure” on revenues, MLive reported. Officials attributed pressures to decreased state funding, federal research funding challenges and shifting student demographics.

University of Texas at Arlington

Multiple programs are being suspended at the University of Texas at Arlington.

Officials announced in May that the public university is suspending new admissions in five graduate and undergraduate programs and consolidating others, The Houston Chronicle reported. The changes follow a recent academic portfolio review. Officials told the newspaper the changes aim to meet student demands and ensure the university’s “long-term sustainability.”

University of Oregon

The public flagship is freezing hiring and restricting nonessential travel in an effort to cut costs.

Officials announced the move last month, with President Karl Scholz writing to the campus community that the University of Oregon is “now at a crossroads” and “will need to cut around $65 million from our budget to avoid an ongoing annual budget deficit in the coming years.” He added that officials will work with faculty and others over the next six months to “explore academic and administrative approaches that allow us to be nimble, disciplined, and focused on strengths.”

Scholz noted UO is projecting a “significantly lower” number of out-of-state students this year.