Dive Brief:
- University of Utah leaders plan to slash staff positions by 5% to 15% over the next year as the institution faces what it described as “some of the most significant challenges in its 176-year history.”
- The staff eliminations would amount to between 250 and 855 jobs, cuts that could include layoffs as well as attrition and retirements, according to a Tuesday news release. Reductions won’t apply evenly across units, according to the university’s chief financial officer.
- Leaders hope to free up resources to reinvest in the institution, which could include “more faculty positions, increased faculty salaries, more research support, and continued development of a more fully residential campus,” the university said.
Dive Insight:
University of Utah leaders say they are trying to prepare the institution for a financially sustainable future — one with fewer students.
They cited projections that college-aged students and state college enrollment are both poised for a multi-year decline beginning early in the next decade.
Meanwhile, University of Utah also said expenses have been growing faster than revenues, “a trajectory that is not sustainable over the long term.” Leaders emphasized the need to grow margins in that environment, to provide money to invest in University of Utah’s mission. As it stands, the institution’s operating margin is estimated at 5.3% for fiscal 2027, 20 basis points below 2025 levels, according to an August presentation.
The expected staff cuts will come as work is “consolidated, simplified or eliminated,” the university said. Leaders have not made final decisions about how many positions will be cut, and scope and timing will depend on job functions.
University of Utah currently has 5,700 non-healthcare staff. The university’s medical center also aims to undertake similar downsizing measures.
“Every dollar and every hour we can redirect from unnecessary complexity is capacity we can put back into our mission of creating impact,” Chief Financial Officer Gary McArthur said in a statement.
The University of Utah also announced last month it would cut back retirement benefits for newly hired employees, in line with its "university-wide modernization effort."
Along with enrollment and cost pressures, the university has navigated changes to the state’s funding model. Last year, it announced it would axe 81 courses and degree programs as part of a legislatively mandated initiative to cut costs and reinvest in high-demand fields.
The university also plans to close its last remaining solo satellite location in the state as part of its savings plan to comply with the new law.
