Northwestern University undertaking a variety of cost-cutting measures amid financial pressure

Northwestern University undertaking a variety of cost-cutting measures amid financial pressure

Northwestern University is planning to reduce staff and make other cuts as it grapples with rising costs and federal funding uncertainties.

The plans have angered some staff and faculty who say the university should be consulting with them before making any significant announcements.

On June 10, Northwestern University sent an email to staff and faculty announcing it would implement cost-cutting measures, including a hiring freeze and 鈥渄ecreases in the total number of staff positions.鈥 It also said staff would not get bonuses next year, that the university was switching health insurance companies and there would be changes to the tuition benefits program, which provides employees with financial assistance toward the cost of courses.

鈥淟ike a number of our peer universities, we have now reached a moment when the university must take a series of cost-cutting measures designed to ensure our institution鈥檚 fiscal stability now and into an uncertain future,鈥 the email said. 鈥淭hese are not decisions we come to lightly.鈥

Lu铆s A. Nunes Amaral, an engineering professor, said university leaders should be inviting faculty members to the table to talk about upcoming changes.

鈥淭hey鈥檙e not asking us, 鈥榃hat things would you prefer to give up if we have to give up certain things?鈥欌 Amaral said. 鈥淭here is this idea of a shared governance, and it鈥檚 a complete sham.鈥

The university is facing financial pressure due to the federal funding freeze of $790 million implemented by the Trump administration in April. Even so, Amaral said he thinks the Board of Trustees at the university is using these financial concerns as an excuse to 鈥渟how who is in charge.鈥

鈥淭hey want to put us in our place,鈥 Amaral said. 鈥淎nd one way to put us in our place is to show that they can take away benefits that we鈥檝e had for a long time鈥t鈥檚 deeply insulting and deeply disrespectful.鈥

Jackie Stevens, chapter president of the American Association of University Professors and a political science professor at the university, said 鈥渇aculty are both outraged and despondent about this perpetual battering from the administration.鈥

Stevens said the university has “[refused] to work with us in order to combat the forces that are really driving this, which is the Trump administration.鈥

A student worker, who asked to remain anonymous out of fear of retaliation from the university, said cuts to her tuition benefits mean she鈥檒l have to take fewer classes and more time to get her degree.

That benefit is currently 90% tuition coverage with no annual maximum. But it鈥檒l be capped at $12,000 per year. Tuition for a full-time Master鈥檚 student in the 2024-2025 school year was $22,304 per quarter, according to Northwestern鈥檚 student finance website.

鈥淭his is like a divestment,鈥 she said of the change. 鈥淚n a place that is supposed to prize higher education, to put this barrier up is like they鈥檙e saying one thing, but then they鈥檙e doing something else.鈥

University spokesperson Jon Yates did not comment and instead directed the Sun-Times to previous email communication and university announcements to staff and faculty members.

Kate Banner, a research director at Northwestern鈥檚 medical school, said staff and non-tenured faculty are feeling anxious about potential layoffs.

鈥淭he staff are the people who do so much of the work,鈥 Banner said. 鈥淭hey鈥檙e the unsung heroes of research. If we don鈥檛 have a way to support and respect that backbone of the research enterprise, then it really calls into question the future of this work.鈥

Northwestern is also switching staff and faculty from Blue Cross Blue Shield to UnitedHealthcare in October. United has faced backlash over high costs and denied claims. There are nearly 1,500 signatures on a petition asking the Board of Trustees and administration to give employees the option to maintain their Blue Cross coverage.

The university said Tuesday that it is committed to 鈥減roviding affordable health care coverage options to our community.鈥

Read More…