DePaul University laid off 114 staff members in December as part of a significant effort to reduce spending by over $27 million. The cuts, which represent approximately 7.6% of the university's staff, come in response to mounting financial pressures affecting higher education institutions across the country.
In a joint email to faculty and staff, university leaders described the decisions as "extraordinarily difficult." The layoffs impact numerous departments and are coupled with a hiring freeze and severe cutbacks to services at the university's Loop Library.
Key Takeaways
- DePaul University eliminated 114 staff positions, or 7.6% of its workforce, to address a budget shortfall.
- The university is aiming to cut a total of $27.4 million from its operating budget.
- Financial challenges are attributed to a drop in international graduate student enrollment, higher demand for financial aid, and rising benefit costs.
- The Loop Library has seen significant staff reductions and service cutbacks, with its long-term future remaining uncertain.
- These measures reflect a broader trend of financial strain impacting universities like Northwestern and Loyola in the Chicago area.
Navigating a Financial Storm
DePaul University is implementing a series of drastic measures to stabilize its finances. The administration is targeting a total spending reduction of $27.4 million. Of this amount, $16 million will be cut from operating expenses, a figure that includes the recent staff layoffs. An additional $11.4 million is being saved through university-wide actions, such as the suspension of merit-based pay increases for faculty and staff.
The layoffs were not confined to a single area. According to university communications, the cuts were distributed across most colleges and departments, including Mission and Ministry, the law school, and even within the president's own cabinet. To prevent further growth in personnel costs, the university has also instituted a staff hiring freeze and a slowdown in faculty hiring, eliminating most open positions.
Budget Cuts by the Numbers
- Total Spending Reduction: $27.4 million
- Staff Positions Eliminated: 114 (7.6% of staff)
- Operating Expense Cuts: $16 million
- Academic Affairs Cuts: $4.4 million
In a statement, DePaul president Rob Manuel, provost Salma Ghanem, and CFO Sherri Sidler acknowledged the human impact of the decision.
"These decisions were extraordinarily difficult, and leaders across the university did not make them lightly. Each person affected contributed to the life of this university in meaningful ways," they wrote.
The university confirmed it is providing support for the affected employees, including severance packages, career counseling, and subsidies for health insurance to aid in their transition.
The Future of the Loop Library in Question
Among the most visible changes is the significant scaling back of the Loop Library. Several library positions have been eliminated, leading to speculation about its potential closure. While university officials state that a final determination has not been made, they have confirmed the library will remain open through the 2025-26 academic year, albeit with reduced capacity.
For the current academic year, the library will operate with just one full-time librarian and some part-time staff. This reduction in personnel has led to fewer service hours and a change in how students and faculty can access research support.
Robert Karpinski, associate vice president for Academic and Library Affairs, outlined the new procedures in an email to faculty. "Research assistance at the Loop Library will be available by appointment," he stated. He also noted that the library would not be able to fulfill all requests for library instruction, especially for classes on the Loop Campus. Students are being encouraged to use the online "Ask a Librarian" feature for assistance.
A Widespread Challenge in Higher Education
A National Trend
DePaul's financial difficulties are not unique. Universities nationwide are grappling with a complex mix of challenges, including declining federal research funding, demographic shifts resulting in fewer high school graduates, and a sharp decrease in international student enrollment following global events and policy changes. These factors combine to create significant budget shortfalls that force institutions to make difficult choices.
The financial pressures at DePaul are symptomatic of a larger crisis in American higher education. University officials cited a "significant drop in international graduate student enrollment" as a primary driver of the revenue shortfall. This is compounded by an increased demand for student financial aid and the rising costs of employee benefits, particularly health care.
Other institutions in the Chicago area are facing similar headwinds. Northwestern University recently eliminated 425 positions to close its budget gap, representing a 5% reduction in its staff-related budget. It also paused compensation increases and implemented its own hiring freezes. Similarly, Loyola University Chicago is contending with reduced federal funding and enrollment challenges.
Despite the cuts, DePaul's administration has stated its commitment to protecting the core student experience, noting that areas like on-campus student employment were shielded from the reductions. "To be good stewards of our resources, we are taking swift action to reduce spending in our current operating budget to meet our financial obligations," a university spokesperson said.
Looking Ahead: Designing a New DePaul
In response to the financial crisis, DePaul is launching a strategic initiative called Designing DePaul. The plan aims to create a more resilient and sustainable future for the university by investing in academic programs, enhancing student success initiatives, and developing new revenue streams.
A major component of this strategy is a new fundraising campaign, Mission:Forward. The university hopes to raise $650 million through this effort, with the funds designated for scholarships, athletics, and support for faculty and research.
This forward-looking plan signals that while the current moment is one of retraction and difficult choices, the university's leadership is also focused on long-term growth and adaptation. The goal is to build a financial model that can withstand the evolving landscape of higher education and continue to serve its students effectively.
