Northwestern University Lays Off 87 Staff Members, Lowers Budget

EVANSTON, IL — Leaders of Northwestern University this week announced the layoffs of 87 staff members. Another 187 employees opted for a recently offered voluntary separation plan, according to President Morton Schapiro, Interim Provost Kathleen Hagerty and Craig Johnson, senior vice president for business and finance.

About a third of the recent layoffs were among the approximately 250 staff members who were furloughed in June, they said Wednesday in a message to the university community. None of the positions eliminated were faculty members.

Northwestern is set to end fiscal year 2020 on Aug. 31 about $90 million in the red after halting discretionary spending and capital projects suspending retirement contributions for faculty and staff, the officials said.

"Despite our intention to hold many aspects of Fall Quarter on campus, we anticipate lower revenues from reduced in-person activity. We also anticipate increased expenses from the health and safety measures that are necessary to protect our community," they said. "The projected financial impact next year means that school and unit fiscal year 2021 budgets have been lowered."

Some schools and units may further reduce spending, leave positions vacant or look for new revenue sources, the university officials said. Everyone laid off will receive severance pay based on their years of service, continuation of medical insurance and help finding a new job, according to their joint statement.

"Many of the layoffs we are announcing today are due to local-level strategic restructuring that would have occurred regardless of the number of voluntary departures," Schapiro, Hagerty and Johnson said Wednesday, explaining the layoffs were not exclusively the result of too few workers electing for the voluntary separation plan.

"Unfortunately, we cannot be certain whether future actions might become necessary. Much will depend on the pandemic’s trajectory and whether revenues stabilize or continue to decline," they added. "University leaders are preparing for various scenarios even as we continue working toward an on-campus Fall Quarter."

Last month, Northwestern's food service provider, Compass Group, announced the layoffs of about 230 workers at the university's Evanston and Chicago campuses.

Last week, Hagerty announced plans for a two-week quarantine period for all students returning to the Evanston campus. Before taking part in any in-person activity, students are required to participate in what university officials have dubbed "Wildcat Wellness" from Sept. 6 to Sept. 20, with restrictions similar to Gov. J.B. Pritzker's stay-at-home order.

Earlier this week, Northwestern's football team paused workouts following a positive COVID-19 test result. Associate Athletic Director Paul Kennedy said Monday a contact tracing and quarantine protocol had been implemented. He did not respond to an inquiry Friday regarding whether workouts had resumed or practice had begun.

Northwestern's football season is scheduled to begin with a trip to Pennsylvania in less than a month, Big Ten conference officials announced Wednesday.

Whether college sports goes ahead could make a difference when it comes to Evanston's city budget, according to a memo to the City Council from Hitesh Desai, the city's treasurer and chief financial officer.

"Any decisions about student attendance and sports seasons for Northwestern University," Desai said, "will also have a major impact on the City's finances."

Related:
230 Workers Laid Off By Northwestern Food Service Provider
Announcing $90 Million Shortfall, Northwestern Furloughs 250 Staff
Northwestern Freezes Hiring, Salaries During Coronavirus Pandemic
Moody's Downgrades Northwestern's Credit Rating