Northwestern University faces budget crisis and cuts 425 positions

In the United States, Northwestern University announced significant layoffs on July 30, 2025, as a response to a mounting budget crisis. The university's leadership cited a substantial budget gap as the primary reason for these cuts, which encompass various schools and units within the institution. Although an unspecified number of layoffs are involved, nearly half of the positions being eliminated are currently vacant. The announcement included a detailed explanation of the financial pressures that have led to this decision, emphasizing that personnel costs make up 56% of the university's expenditures. Prior to this action, the university had already implemented measures like a hiring freeze, suspension of merit bonuses, and reductions in administrative and academic budgets. Despite these efforts, they were unable to bridge the budget gap without further reductions in staffing. The letter sent to the university community from President Michael Schill, Provost Kathleen Hagerty, and CFO Amanda Distel reflected on the challenges faced by Northwestern, indicating that these cuts are an essential step towards achieving immediate and long-term financial stability. The university had also modified its tuition benefits program and staff health insurance plans in earlier announcements this year in an attempt to control costs. Additionally, complications arose when the Trump administration froze $790 million in federal funding that was crucial for various university projects and programs. The freeze affected several grants from key government agencies, further exacerbating the university's financial issues. As a result, the institution's administration is now pushed into making difficult decisions to ensure the continuation of essential services and programs for the future.