Citing a finances deficit in extra of $200 million, the College of Southern California’s interim president mentioned Monday that an undisclosed variety of layoffs and different belt-tightening measures could be carried out to “deal decisively with our monetary challenges.”
Beong-Soo Kim wrote in a letter addressed to college and employees that USC is “experiencing important shifts in federal assist” for its analysis and different packages — a product of the Trump administration’s sweeping effort to chop billions of {dollars} in grants — and in addition faces “potential decreases in worldwide scholar enrollment.”
On the similar time, Kim mentioned, USC’s bills have “considerably outpaced” its income for a number of years.
Latest cost-cutting — together with a hiring freeze introduced in March — hasn’t been sufficient. Kim mentioned that by the tip of the fiscal 12 months that concluded in June, the college’s deficit had mushroomed to greater than $200 million, a notable improve from $158 million a 12 months earlier.
Along with layoffs, Kim mentioned, USC may even promote unused properties and alter compensation for its highest earners, amongst different strikes. He added: “By taking these robust actions now, I’m completely assured that USC can and can emerge stronger, able to proceed remodeling lives and benefiting our society for generations to come back.”
Universities throughout the nation have reeled in current months as President Trump has upended a long time of norms in increased schooling, with tens of billions of {dollars} of federal funds threatened or withheld.
In March, the College of California introduced a systemwide hiring freeze and cuts in a number of areas amid Trump’s threats to slash its analysis funding. In late June, Stanford disclosed $140 million typically working fund cuts and associated layoffs for the upcoming 2025-26 educational 12 months, citing “important uncertainty about how federal assist for universities will evolve.”
And final week, Boston College introduced it might give pink slips to about 120 employees members in an try to cut back its finances by 5%.
Kim mentioned it’s doable {that a} college with the dimensions of USC may lose federally sponsored analysis funding value greater than $300 million yearly.
Referencing at the moment’s “risky exterior atmosphere,” Kim mentioned that the college would “proceed to advocate for the very important significance of analysis and our educational mission,” however added, “we can not depend on the hope that federal assist will revert to historic ranges.”
Some at USC see issues in another way from the interim president.
In interviews, two college workers acknowledged how grave the federal funding losses may very well be — however additionally they cited a number of expensive tasks that they consider have harm USC’s funds. These endeavors embody the development of the Bloom Soccer Efficiency Heart, which broke floor in November; the set up of enhanced safety measures within the aftermath of spring 2024 protests over Israel’s conflict in Gaza; and the opening of the college’s Capital Campus in Washington, D.C., in 2023.
Sanjay Madhav, an affiliate professor of apply on the USC Viterbi engineering college, mentioned that these and different pricey ventures had been a part of a “sequence of poor selections” made by college management in recent times.
“The administration has made a number of irresponsible monetary selections,” mentioned Madhav, who’s concerned in a union organizing effort for non-tenure monitor professors. “The common workers, they in the end pay the worth for the poor selections.”
USC’s Capital Campus in Washington, D.C.
(New Media Methods Inc.)
In an e mail, The Occasions described among the criticism and requested the college for remark. In response, a spokeswoman for USC mentioned that the “info that’s out there” was in Kim’s letter.
The interim president didn’t point out how many individuals would lose their jobs or present different particulars in regards to the cuts. “That USC will not be alone in having to take these troublesome actions doesn’t make this information any much less disappointing or painful to listen to,” he mentioned.
Kim’s letter comes simply days after The Occasions reported on a trim inside USC’s athletics division, together with the shedding of six individuals and elimination of one other six positions. Among the many departures was Paul Perrier, an government senior affiliate athletic director.
It’s not clear if the cuts on the athletics division are a part of the layoffs described by Kim; requested about these reductions, the college spokeswoman once more referred The Occasions to the interim president’s letter.
Uncertainty over the dimensions and scale of the looming job cuts has left staff demoralized, mentioned Phil Turner, who has labored on the college since 2009 and is affiliate director of USC Housing. He additionally serves as president of the USC Workers Meeting, which advocates for workers.
“Workers morale is in tatters — I believe it’s the worst it has ever been within the 16 years I’ve been right here,” mentioned Turner, who was talking as an worker and never in an official capability. “I believe all people is simply aching for some kind of win or optimistic momentum, however it isn’t there. Clearly, we have to course right as a college.”
Kim’s letter mentioned that he welcomed suggestions and directed readers to an online web page the place they may supply solutions in regards to the college’s “monetary resilience efforts.”
However Madhav mentioned that it might be laborious to weigh in with so few particulars recognized in regards to the college’s plan. As a substitute, what he’s hoping for is concrete details about the upcoming job reductions.
“If anybody goes to be laid off, they’d wish to know with as a lot discover as doable,” he mentioned. “Particularly given how troublesome the job market is now.”
Occasions employees author Jaweed Kaleem contributed to this report.
