Boston University Lays off 120 Employees Amid Federal Funding Cuts

The student union building on the Boston University Campus in Boston, Massachusetts on July 26, 2022. The building is home to the campus's only Plan-B or "morning-after" pill vending machine. JOSEPH PREZIOSO/AFP via Getty Images

Boston University announced the layoff of 120 employees as the school cuts its budget by roughly 5% for the next year amid federal funding cuts.

The development comes as many higher education institutions in the area have also announced layoffs and other spending reductions. This is primarily due to United States President Donald Trump enacting funding cuts and suggesting other measures to force universities to re-imagine their revenue models.

Boston University Announces Layoffs

Harvard's Kennedy School and Chan School of Public Health announced layoffs last month. The institution heavily relies on federal and outside sources of funds and had already announced a series of layoffs in April.

This is also the case for Harvard Medical School, along with UMass Chan Medical School in Worcester, which laid off or furloughed 200 employees earlier this year. Boston University President Melissa Gilliam made the announcement in an email to the university community on Monday.

She said that the latest federal actions and funding cuts are significantly affecting research and day-to-day operations at the institution. She added that universities are facing other pressures, including rising inflation, changing demographics, declining graduate enrollment, and others, amid a national renegotiation of funding, according to WBUR.

On top of laying off 120 employees, Boston University also eliminated an additional 120 vacant positions as part of its plans moving forward. Many students expressed frustration with the decision, with one rising senior, Devanj Vajpayee, saying it did not seem like there were enough professors even before the layoffs.

Struggling Amid Federal Funding Cuts

While the fiscal year 2026 budget reductions will be spread across the university, some areas will experience smaller cuts than 5% due to strategic reasons. On the other hand, other areas will experience greater than 5% reductions, the Boston University reported.

Gilliam's letter added that they made every effort to limit the number of layoffs, noting that the latest actions will apply to roughly 1% of the school's total employees. It noted that the determinations were not made lightly and said that the university is committed to supporting its colleagues through the transition.

Many international students, like Vajpayee, are sharing concerns with the university's financial state, given that they are paying roughly $90,000 every year for tuition. It was also noted that Boston University's announcement reflects broader national pressures facing higher education.

The university also did not provide details on which departments would be impacted, which means that students and families are in the dark about whether the laid-off employees are administrators, professors, or others, as per CBS News.

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