Johns Hopkins University To Cut Salaries, Jobs Due To Coronavirus

BALTIMORE, MD – Johns Hopkins University has announced a series of cuts and restrictions it will be making in response to significant financial losses it anticipates due to the new coronavirus outbreak, including salary freezes, hiring restrictions and potential furloughs.

In an announcement posted to the university's website, President Ronald Daniels outlined anticipated losses, guiding principles for mitigation and recovery, and actions the university plans to take. The university currently anticipates a loss of more than $100 million for fiscal year 2020 and as much as $375 million for fiscal year 2021.

Assuming in-person instruction resumes for the fall semester, the university anticipates a loss of as much as $25 million in tuition and student-related revenues for FY20, and $150 million in tuition and student-related revenues for FY21. Tuition revenue was not reduced for the spring semester after the university closed its physical campus, but the university rebated the remainder of spring semester housing, dining and student service charges, adding up to $12 million.

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The university also anticipates a loss of as much as $25 million for FY20 and $30 million for FY21 for sponsored research, due to the suspension of on-campus non-COVID-19 research. Additionally, it anticipated the university will lose as much as $25 million for FY20 and $60 million for FY21 in unrestricted contributions and gifts.

Mitigation efforts include austerity measures that will immediately reduce losses for upcoming academic year.

Immediate cuts and restrictions include:

• A one-year suspension of employer contributions to 403(b) and 457(f) retirement accounts.
• Salary reduction for university leaders, including a 20% salary reduction for the president and provost, and 10% salary reduction for deans and university officers.
• A freeze on base salaries for faculty and staff through FY21.
• Hiring restrictions for staff positions after April 8, and a review of all approved or planned faculty searches to determine which should be paused.
• Furloughs and layoffs, to be decided at the divisional and departmental level.
• Suspension of all new capital projects over $100,000 through FY21, with exceptions for projects that address critical life safety or systems issues or meet an urgent strategic need.
• Reductions in non-personnel expenses, including goods and services vendors.

Johns Hopkins University is also establishing two COVID-19 Workforce Relief Funds to provide grants for lowest-resourced employees and displaced contract workers in need of financial assistance: the COVID-19 Employee Relief Fund and the COVID-19 Contract Worker Relief Fund.