Dive Brief:
- Washington University in St. Louis has laid off 316 staffers and eliminated another 198 unfilled positions since March, Chancellor Andrew Martin said in a community message Tuesday.
- Leaders made the cuts to the private university’s main campus as well as to its medical center. In all, the reductions are expected to save about $52 million annually, Martin said.
- The chancellor cited several budget pressures driving the cuts, including “drastic reductions in federal research funding,” the changing needs of students, and “ineffective processes and redundancies in the way we operate.”
Dive Insight:
Martin framed the workforce cuts overall in terms of mission and financial sustainability. “If we want to be great, and not just good, we must focus our resources where they will have the most impact and ensure that we’re positioned for success in the long-term,” he said.
He said the current round of reductions were finished but hinted that there could be more changes down the line. “We must continue to evaluate how we work and identify additional ways to operate more effectively in support of our mission, if we are to be successful,” Martin said.
Nonetheless, WashU is in a much stronger position than many of its peers in the private college world.
For fiscal 2024, the university logged $20.5 billion in assets on its balance sheet and an operating surplus of $150.3 million.
Still, that surplus has been steadily shrinking in recent years. Just between fiscal years 2022 and 2024, the figure fell by 58%. Over the same period, total expenses rose by nearly 25%, or about $1 billion, to $5.1 billion in fiscal 2024.
For fiscal 2025, the university broke even on its budget thanks to “prudent financial management and thoughtful work,” Martin said in late July. Among other actions, WashU paused new construction projects such as a planned arts and sciences building and green space upgrades.
In the same July message, Martin pointed to long-term “structural budget challenges that WashU must address” and announced that the university would skip annual merit raises for its employees for fiscal 2026.
“I know this is disappointing news,” he said. “Please know it is not a reflection of your hard work and contributions, which I deeply value, but a necessary step as we prioritize long-term institutional stability and strategic investment in our core mission.”
As WashU looks ahead to future fiscal years, Martin noted in his July message that the university will face a heightened endowment tax bill of roughly $37 million after Republicans' massive tax and budget bill passed this summer takes effect.
In fiscal 2024, the university’s endowment was worth $12 billion, or about $797,600 per student, according to the latest study from the National Association of College and University Business Officers and asset management firm Commonfund.
