Harvard University said it would be laying off staff from its engineering school after years of financial challenges and as the federal government cuts funding and raises taxes on some colleges.
"New federal policies, including a forthcoming increase to the endowment tax, and an expected reduction in indirect recovery rates and changes to the allocation of research funding, have signaled the start of a fundamental shift in the relationship between research universities and the federal government," David Parkes, dean of the John A. Paulson School of Engineering and Applied Sciences, wrote in a statement on Thursday.
"Even with the recent reinstatement of existing grants to Harvard, this shift is placing enormous financial pressure on every school across the University and our peer institutions around the country."
The Boston Globe, which first reported the changes, said it involves 40 layoffs. A spokesperson for the engineering school declined to comment on the number of people cut.
"We cannot bridge the budgetary gap without reducing our workforce," Parkes wrote. "As a result, I have made the difficult decision to lay off members of our staff and significantly restructure several offices."
Harvard, the richest and oldest US university with a $53 billion endowment, has been battling with the Trump administration for months after the White House froze more than $2 billion in funding for research this year.
Trump initially accused Harvard of allowing antisemitism to run rampant on campus following Hamas' October 2023 attack on Israel. His administration soon expanded its criticisms to include allegations of political bias, scrutiny of its ties to China and opposition to diversity efforts.
President Donald Trump said last month that a deal to resolve the fight was close, with the Cambridge, Massachusetts-based school set to pay about $500 million and operate trade schools.
"All you have to do is paper it," Trump said to Education Secretary Linda McMahon during an executive order signing in the Oval Office in late September. No deal has yet been announced.
Harvard last month won a major legal victory when a judge said the government violated the university's free speech rights by cutting off billions of dollars in research funding. The administration said it would appeal that ruling. Shortly after, $46 million in previously suspended funds began flowing back to Harvard.
According to Harvard's most recent financial report, the engineering school receives 37% of its operating revenue from sponsored support, the majority of which comes from the federal government.
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