
How Trump Forced Cuts at Wealthy Universities
Six months into his second term, President Donald Trump has forced changes at many of the nation’s wealthiest universities, some of which have shed hundreds of jobs amid federal funding issues and investigations.
While sector layoffs are so frequent that Inside Higher Ed has dedicated monthly coverage to rounding up such reductions, those actions are more common at small, cash-strapped colleges or state institutions reeling from budget cuts. But universities with multibillion-dollar endowments have been among those making the deepest cuts in the first half of 2025, often driven by freezes on federal funding that the Trump administration imposed with minimal notice.
Some universities have also cited the recently passed endowment tax increase as a factor in layoffs.
Altogether the layoffs show a sector bracing for a new reality where research funding can be suddenly yanked away with little to no explanation and international and graduate student enrollment, once considered a cash cow, is under threat—prompting institutions in even the highest financial stratosphere to cut costs as they navigate changing policies and a president sharply critical of the sector.
Here’s a look at how the nation’s wealthiest universities are adjusting staffing levels due to an uncertain federal policy environment, research funding issues and a flurry of legal actions from the Trump administration that have forced concessions from multiple well-resourced institutions.
Thousands Out at Johns Hopkins
The Trump administration’s cuts to the U.S. Agency for International Development hit Johns Hopkins University with $800 million in canceled funding, prompting the Baltimore-based institution to shut down numerous international programs and lay off 2,222 employees earlier this year.
The 2,222 job cuts are the deepest announced at any institution this year.
The layoffs, announced in March, span more than 40 countries. Of the jobs cut, 1,975 were located internationally, while another 247 were in the U.S., with the majority in Baltimore. JHU announced at the time that another 107 employees would be furloughed.
Johns Hopkins has an endowment recently valued at more than $13 billion.
Hundreds of Buyouts at Duke
Duke University, which has an endowment recently valued at nearly $12 billion, made some of the deepest cuts of the year so far when officials announced in July that 599 employees had accepted buyouts. Another 250 faculty members are reportedly weighing buyout offers as well.
Following the first round of buyouts, university officials said layoffs will begin this month.
Duke officials announced the buyouts before the Trump administration froze $108 million in federal grants and contracts and opened investigations into alleged racial discrimination, accusing the university of emphasizing diversity over merit in hiring, admissions and other practices.
Deep Cuts at Northwestern
Earlier this year, the Trump administration abruptly froze $790 million in research funding for Northwestern University, reportedly with no explanation. That action occurred at about the same time that the federal government opened an investigation into alleged antisemitism on campus.
Northwestern, which has an endowment valued at more than $14 billion, responded by eliminating 425 jobs last month in an effort to shave 5 percent off of its staff budget. The move was preceded by a hiring freeze and other cost-cutting measures announced earlier this year.
President Michael Schill and other administrators wrote in a message to campus that the cuts were “in response to more than just the federal research funding freeze.” They also pointed to “rapidly rising healthcare expenses, litigation, labor contracts, employee benefits, compliance requirements and a suite of federal changes” that may harm international student enrollment.
The Ax Falls at Stanford
Stanford University plans to cut 363 jobs beginning this fall as part of an effort to shave $140 million off the general funds budget due to financial issues connected to federal policy changes.
Those cuts come after the university announced a hiring freeze in February.
Stanford has the fourth-largest endowment among U.S. universities, recently valued at $37.6 billion. But despite its deep pockets, the private research university is feeling the squeeze from the Trump administration, with officials writing in a state regulatory filing that the university anticipates “reductions in federal research funding” and an increase in endowment taxes.
Additionally, the U.S. Department of Justice launched an investigation into admissions practices at Stanford earlier this year, accusing the university of sidestepping a ban on affirmative action.
Nearly 180 Layoffs at Columbia
Few institutions have faced as much scrutiny from the federal government in recent years as Columbia University, which agreed to sweeping changes and yielded to demands from the Trump administration to overhaul admissions, disciplinary processes and academic programs. The university will also share admissions data and reduce the number of international students it accepts in an unprecedented agreement with the Trump administration that culminated in a $221 million settlement over allegations of antisemitism tied to pro-Palestinian campus protests.
Although the Trump administration will release some frozen research funds as a condition of the settlement, choking off federal dollars has already prompted cuts. Columbia announced in May that the university had laid off nearly 180 researchers amid its standoff with the federal government.
Columbia’s endowment was recently valued at $14.7 billion.
‘A Day of Loss’ at Boston U
Boston University announced plans last month to lay off 120 workers and eliminate another 120 vacant jobs.
Officials wrote in a letter to campus that “recent and ongoing federal actions and funding cuts are affecting our research enterprise as well as day-to-day operations” and creating “uncertainty” as BU grapples with inflation, declining graduate enrollment and other challenges.
“This is a day of loss for all of us,” officials wrote. “There is no way around this. We know our community may need time to adjust to these difficult changes. Yet, it is also a necessary step in ensuring our future.”
BU’s endowment is valued at more than $3 billion.
Dozens Laid Off at USC
The University of Southern California cut 55 jobs last month, according to a state regulatory filing.
Officials announced in mid-July that layoffs were underway, though they did not specify the number of employees affected. USC also implemented a hiring freeze, halted merit-based pay raises, ended some vendor contracts and pulled back on discretionary spending and travel.
Interim president Beong-Soo Kim called the layoffs “painful” in a message to campus. He cited various financial concerns, including “significant shifts in federal support for our research, hospitals, and student financial aid” as well as potential declines in international enrollment.
“The ultimate impact of these changes is difficult to predict, but for a university of our scale, the potential annual revenue loss in federally sponsored research funding alone could be $300 million or more,” Kim wrote, adding these changes came on top of a pre-existing budget deficit.
USC’s endowment was recently valued at $8.1 billion.
Unspecified Cuts at Harvard
Harvard University, which is currently locked in a legal battle with the Trump administration over alleged antisemitism and other accusations, has also laid off employees this year. Harvard Magazine reports that multiple schools have reduced staff as a result of having federal research funds frozen.
However, Harvard has not released numbers and declined to provide an estimate to Inside Higher Ed. Union officials have said that layoffs could add up to hundreds of workers.
Harvard is the nation’s wealthiest university, with an endowment valued at nearly $52 billion.
Likely Layoffs at Brown
Following Columbia, Brown University struck a deal with the Trump administration last month, agreeing to certain changes in order to restore around $510 million in frozen research funding.
The federal government closed investigations into alleged antisemitism as part of the settlement. Brown also agreed to put $50 million over the course of a decade into workforce development in Rhode Island. Less than a week after the settlement, Brown officials announced that “some layoffs will be necessary” due to the “persisting financial impact of federal actions.”
Brown also enacted a hiring freeze in March, and nearly 350 jobs remain unfilled.
University officials wrote that they expected a $30 million hit to the 2026 fiscal year budget from the One Big Beautiful Bill Act, Trump’s far-reaching legislation that affected the sector in various ways, including increases to endowment taxes and limiting or eliminating some loan programs.
Brown’s endowment was recently valued at $7.2 billion, the lowest among its Ivy League peers.
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