students. Even with a $27 billion endowment, Stanford University expects layoffs will be ‘unavoidable’, On Wednesday, Stanford University president Marc Tessier-Lavigne announced in a letter to the Stanford community that the school was facing financial challenges related to the coronavirus pandemic and that some reduction in the school’s workforce would likely be “unavoidable.”, “We don’t yet know the scale of job reductions. Healthcare workers at Stanford Health Care hospitals in the South Bay are facing 20 percent pay cuts and furloughs starting Monday, a move that will affect about 14,000 healthcare workers as … August 17 (Mon) Axess opens for course enrollment for J.D., J.S.M., L.L.M. "If the pandemic continues to worsen in our region and we are not allowed to bring back students as planned, there could be further significant impacts on our operations and revenue streams. Employees who have been laid off, either temporarily or permanently, will stay on the payroll for 60 days, he said. The proliferation of well-paid administrators (each with his/her own retinue of assistants and secretaries) will continue, as will the grievance establishment. Employees who are temporarily laid off may continue medical benefits and people who have permanently lost their jobs will be eligible for career transition services, severance pay and continued medical benefits. All rights reserved. Layoffs may be massive if the university decides to shut down all residence and dining enterprises. It is yet to be seen how these layoffs will play out at Stanford… "The permanent layoffs include reductions to Stanford's athletic staff, announced in July.Employees who have been laid off, either temporarily or permanently, will stay on the payroll for 60 days, he said. "Because salaries are such a large component of the budgets of all units, unit leaders have had to make difficult choices about their workforces over the next year.". Employees who are temporarily laid off may continue medical benefits and people who have permanently lost their jobs will be eligible for career transition services, severance pay and continued medical benefits.Stanford still plans to bring undergraduates back to campus in the fall with numerous safeguards in place, including mask requirements, regular testing, temperature checks at dining halls and contact tracing in the event of infections. To determine the new steady state, in April we asked units across the university to develop budget plans for 2020-21 that incorporated a potential 15% reduction in endowment payout and a 10% reduction in general funds (two important components of each unit’s budget) — a worst-case scenario for the 2021 fiscal year. Mobile site. Specifically, Tessier-Lavigne said that the school is forecasting $267 million in financial losses from March 1st to August 31st and potentially greater losses in the following fiscal year. Print Edition/Archives Privacy Policy Stanford has not made any final decisions about how classes will be conducted in the coming academic year. Sign up to be notified of new comments on this topic. Our expectation is that some of these reductions will be temporary layoffs (furloughs) until we are able to resume services and bring employees back, and that other reductions will be permanent layoffs,” wrote Tessier-Lavigne.   To be sure, Stanford’s endowment, like most others, has restrictions on how much can be withdrawn each year and what those funds can be used for, which means Stanford administrators do not have complete access to the full $27.7 billion. 2 of 2 Medical researchers perform serology, testing blood samples to find out whether someone already had and recovered from COVID-19, in Stanford University s Clinical Virology Lab in March 2020. 5:41 PM, May. Contact Us “A…. Though the university's board of trustees approved a budget plan for 2020-21 that includes a 3% increase in endowment payout to support student financial aid, a 10% decrease in payout from other endowment funds to "mitigate market volatility" and the tapping of $150 million of unrestricted endowment funds to help balance the budget, the workforce cuts were still necessary, he wrote. News and M.S.P.A. August 17 (Mon) Axess opens for course enrollment for M.D. Many of the UG2 employees who clean and maintain parts of the campus were immediately affected due [&hellip “I know this is difficult news to hear, and it is difficult for me to share, knowing the dedication and contributions of the people across our Stanford workforce,” he added. Stanford plans to provide final allocations from the endowment and general fund by June so budgets can be finalized in July. Stanford University continues to tighten its budget to address lost revenue due to the pandemic shutdown, including permanently laying off 208 employees, putting 30 additional employees on furlough and eliminating more than 400 vacant positions. Categories: Finance, Leadership communications, President, Workplace & HR Last modified on October 1, 2020. Looking ahead, Stanford has asked all university units to prepare budget plans based on a scenario with a 15% reduction in funding from endowment payout and a 10% reduction from general funds. PR MediaRelease Why do schools have these massive endowments if they’re not for use in a time of emergency? students. and J.S.D. More than 300 employees out of 1,000 were permanently let go at food service management company Bon Appétit in Palo Alto since October, according to the WARN notice. "Although cuts to non-financial aid budgets have been less deep than we initially feared, they have still meant that units and departments have needed to make reductions in spending," Tessier-Lavigne wrote. Stanford’s commitment to continue pay for employees March 16, 2020. Gavin Newsom. "Because salaries are such a large component of the budgets of all units, unit leaders have had to make difficult choices about their workforces over the next year. and M.S.P.A. Follow Palo Alto Online and the Palo Alto Weekly on Twitter @paloaltoweekly, Facebook and on Instagram @paloaltoonline for breaking news, local events, photos, videos and more. Stanford University Provides Financial Support to UG2 Employees Affected by Pandemic-Related Layoffs Like every other college and university in the country, Stanford University had to close substantial portions of its campus as a result of the Coronavirus pandemic. “The university eliminated 450 open positions and reduced the hours of some jobs. Of those applicants who were admitted, 82% chose to enroll. Due to violations of our Terms of Use, comments from this poster are only visible to registered users who are logged in. SLB layoffs come alongside declining revenue: Oil & Gas: July 24, 2020: Above The Law: Layoffs Come To Top 20 Am Law Firm. Sorry, but further commenting on this topic has been closed. However, most of the endowment is restricted in its use and cannot be used to support deficits. Terms of Use Overdose Deaths Far Exceed COVID-19 Deaths In San Francisco. TownSquare Gavin Newsom.Find comprehensive coverage on the Midpeninsula's response to the new coronavirus by Palo Alto Online, the Mountain View Voice and the Almanac here. The university previously announced layoffs of nearly 1,000 dining-service employees and adjunct professors, who won't be returning in the fall. August 24 (Mon) M.D. A&E students. Layoffs may be temporary or permanent, and may occur because of budgetary reasons, lack of work, reorganization, or redefinition of the university’s or the department’s needs. Most incoming freshmen graduated in the top quarter of their high school class. Registrar's Office. Visitor Info, Send News Tips Doesn't the university have lawyers and mechanisms to revise how the endowment is administered in extraordinary circumstances? Of course it is — because layoffs are, in part, a choice. Stanford University, one of the world's leading teaching and research institutions, is dedicated to finding solutions to big challenges and to preparing students for leadership in a complex world. It is located in Palo Alto, California. and J.S.D. But the resurgence of COVID-19 cases locally and across the state could disrupt that plan — and lead to further layoffs, Tessier-Lavigne said. https://vpge.stanford.edu/diversity-initiatives/commitment. https://diversityandaccess.stanford.edu/ The downturn will not be short so expenses will have to be reduced sooner or later. The university would have to borrow the money and may have to anyway.