Northwestern University Announces Elimination of 425 Staff Positions Amid Financial Crisis
EVANSTON, IL - July 29, 2025 Northwestern University revealed it will eliminate 425 staff jobs, representing about 5% of its staffing budget, as a critical cost‑saving step following months of mounting financial pressure. The layoffs are part of broader austerity measures aimed at safeguarding the university’s fiscal health amid an uncertain landscape.
University leadership, including President Michael Schill, described the current period as among the most difficult in Northwestern’s 174‑year history, citing escalating costs, litigation, and volatile policy shifts that may affect international student enrollment and research funding. Nearly half of the positions targeted were unfilled at the time, although the exact number of affected employees remains unspecified.
These cuts follow a previously reported $790 million federal funding freeze enacted by the Trump administration in April, which suspended grants from multiple agencies. While Northwestern has attempted to self-fund critical research during the freeze, officials stress that these layoffs reflect broader structural challenges—not solely the funding hold.
In June, the university had already announced a hiring freeze, elimination of merit-based raises, non‑personnel budget reductions, changes to health insurance and tuition benefit programs, and reductions in capital expenditures.
Community reactions include frustration from faculty over the unilateral approach; staff and employee groups voice concern over reductions in health coverage and tuition benefits. Despite the turmoil, Northwestern leadership maintains its commitment to restoring federal funding and mitigating further disruption through legal, legislative, and institutional collaboration.
Observers view these developments as emblematic of broader financial fragility within the higher education sector in the face of policy uncertainty and mounting internal costs.