DePaul University has announced a significant reduction in staff, laying off 114 employees as a measure to address budgetary challenges. This decision comes in response to increasing costs and a notable decline in enrollment from international graduate students.
Details of Staff Reductions
The layoffs, accounting for 7% of the university’s workforce, were implemented just before the winter break. The school’s leadership informed staff in a letter, emphasizing the challenging circumstances faced by the DePaul community.
Support for Affected Employees
In an effort to assist those impacted, DePaul is providing various transition resources. The support includes:
- Severance packages determined by years of service
- Career counseling services
- Health insurance subsidies
- Additional transition resources
Financial Challenges Facing DePaul
DePaul is grappling with financial difficulties attributed to multiple factors. A spokesperson highlighted the following as key issues affecting the university:
- A significant decline in enrollment of international graduate students
- Increased demand for financial aid among students
- Rising costs associated with employee benefits
To combat these challenges, DePaul aims to reduce its spending by $27.4 million in the upcoming budget year. The university estimates savings of $16 million will stem from the recent layoffs, while an additional $11.4 million will be gained through various measures such as:
- Eliminating merit-based salary increases
- Implementing a hiring freeze
- Reducing retirement contributions
- Lowering pay for executive officers, vice presidents, and deans
Impact of Federal Policies
The institution’s financial strain was exacerbated by federal policies that reduced the number of international students eligible to study in the U.S. This academic year saw approximately 750 fewer international students enrolled, revealing a 62% drop in new graduate student admissions from abroad compared to the previous year.
Comparative Actions by Other Universities
DePaul is not alone in facing these challenges. Other institutions, like Northwestern University, have also had to make tough choices. Northwestern cut 425 positions due to a $790 million federal funding freeze along with other restrictions on international students.
The University of Chicago is making plans to cut $100 million in expenses in light of similar federal policy changes.
Future Directions for DePaul University
In response to these ongoing issues, DePaul is launching a strategic initiative titled “Designing DePaul.” This plan focuses on investing in academic and student success programs, creating new revenue avenues, and ensuring a sustainable future for the institution.
Despite staffing reductions, DePaul’s Loop Library will remain operational this academic year, albeit with adjusted hours.
