Stanford University lays off over 360 employees, slashes $140 million from budget amid policy shifts
The famed Ivy League varsity, Stanford University, has announced laying off over 360 staff members and slashing its budget by $140 million for the 2025-26 academic year, citing financial pressures triggered by federal policy changes and rising taxation on university endowments.As part of the cost-cutting measures, 363 staff positions will be eliminated this fall, the university announced on July 31. The university leadership emphasised the difficulty of the decision, but called it necessary to maintain long-term financial stability.The move comes in response to reduced federal research support and a proposed increase in the endowment tax under President Donald Trump’s ‘One Big, Beautiful Bill’, passed in the House of Representatives on May 22. The bill suggests raising the endowment tax from 1.4% to a staggering 21%, a change, if enacted, would cost Stanford an estimated $750 million annually.More than two-thirds of Stanford’s financial aid budget is funded through its endowment. The proposed tax hike could severely impact these programs, as well as ongoing university research initiatives, which rely heavily on federal grants.“There is significant uncertainty about how federal support for universities will evolve, but it is clear that the status quo has changed,” wrote Stanford President Jonathan Levin and Provost Jenny Martinez in a joint statement.
The famed Ivy League varsity, Stanford University, has announced laying off over 360 staff members and slashing its budget by $140 million for the 2025-26 academic year, citing financial pressures triggered by federal policy changes and rising taxation on university endowments.
As part of the cost-cutting measures, 363 staff positions will be eliminated this fall, the university announced on July 31. The university leadership emphasised the difficulty of the decision, but called it necessary to maintain long-term financial stability.
The move comes in response to reduced federal research support and a proposed increase in the endowment tax under President Donald Trump’s ‘One Big, Beautiful Bill’, passed in the House of Representatives on May 22. The bill suggests raising the endowment tax from 1.4% to a staggering 21%, a change, if enacted, would cost Stanford an estimated $750 million annually.
More than two-thirds of Stanford’s financial aid budget is funded through its endowment. The proposed tax hike could severely impact these programs, as well as ongoing university research initiatives, which rely heavily on federal grants.
“There is significant uncertainty about how federal support for universities will evolve, but it is clear that the status quo has changed,” wrote Stanford President Jonathan Levin and Provost Jenny Martinez in a joint statement.
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