Northwestern University eliminates more than 400 jobs to close budget gap

EVANSTON, Ill. - Northwestern University announced on Tuesday that it will eliminate more than 400 jobs, about half of which are vacant, to help close a budget gap amid "mounting financial pressures."

University leaders said in the announcement that the past several months have been "the most difficult in our institution’s 174-year history."

What we know:

Even after taking "several measures" to address those financial pressures, Northwestern still faces a "significant" budget gap that cannot be closed without personnel cuts.

The layoffs come as Northwestern and other universities face a freezing of federal funding, but the school said the measures announced were in response to other factors, including rising healthcare expenses, litigation, labor contracts, employee benefits, and more.

A little over half of the university’s total annual costs (56%) go toward personnel, according to Jon Yates, Northwestern’s vice president of global marketing and communications.

On Monday, Northwestern said it would reduce its staff budget by about 5%, which includes layoffs.

"This is a difficult day for Northwestern, and we are carrying out today’s actions with care and compassion," Yates said in a statement. "We are a tight-knit community that works tirelessly to improve our world. While deeply painful, today’s reduction in workforce will help ensure our University can continue to serve its mission to be one of the world’s great institutions of teaching and research for generations to come."

The job cuts also come as Northwestern is reportedly in discussions with the Trump administration for a deal to resolve investigations over alleged antisemitism, according to Crain's Chicago Business.