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Harvard's School of Engineering and Applied Sciences to lay off staff due to financial challenges - The Boston Globe

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  Published in Science and Technology on Thursday, October 9th 2025 at 9:32 GMT by The Boston Globe
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Harvard Faces Unprecedented Layoffs Amid Financial Restructuring

By [Your Name]
Boston Globe, October 9, 2025

In an unprecedented move that has sent shockwaves through the academic world, Harvard University announced a wave of layoffs affecting 28 faculty and staff members across three departments. The decision, revealed in a statement released Thursday morning, is part of a broader “strategic reallocation” of resources designed to shore up the university’s long‑term financial health amid a climate of declining enrollment, shrinking state subsidies, and an increasingly competitive higher‑education landscape.

The layoffs span the Harvard School of Public Health, the Department of Economics, and the university’s Office of Student Affairs. While the school’s public‑health division lost 12 tenure‑track and tenured‑adjunct faculty, the Economics Department cut six faculty members, and the Office of Student Affairs shed a dozen administrative personnel. Harvard’s president, Dr. Lawrence M. Klein, said the university would “refocus its investments on core programs that generate world‑class research and maintain our position as the preeminent institution for interdisciplinary scholarship.”

Why the Cut?

Harvard’s president cited “several converging pressures” in a brief note on the university’s website. Among them:

1. Reduced Student Applications: Harvard’s undergraduate application numbers fell from 48,000 in 2018 to 32,000 in 2024, a 33 percent drop that has eroded the revenue stream from tuition and room‑board. The university’s admissions office, the most heavily affected entity, has struggled to maintain a high caliber of incoming students while keeping financial aid commitments.

2. Endowment Performance: While the endowment remains robust at $40.5 billion, its 2024 investment performance lagged behind industry averages, forcing the university to tighten spending. A recent audit of the endowment’s allocation strategy highlighted a growing mismatch between long‑term research goals and short‑term fiscal realities.

3. State Funding Cuts: Massachusetts, like many other states, has reduced its higher‑education subsidies as the state’s economy grapples with high unemployment and a stagnant tax base. Harvard’s reliance on these grants for certain community‑engagement programs has become untenable.

4. Shift Toward Online Learning: The pandemic accelerated Harvard’s move toward hybrid and online courses, which, while increasing accessibility, also introduced new costs for technology and support staff. The layoffs are partly aimed at trimming redundancies created by these shifts.

Dr. Klein emphasized that the cuts are not a “downturn” but a “strategic pivot.” He added that the university will invest approximately $350 million over the next five years in research facilities, interdisciplinary centers, and student support programs that align with the institution’s core mission.

Reaction From Faculty and Alumni

Faculty unions responded with immediate concern. The Harvard Faculty Association released a statement calling the layoffs “an unplanned and disconcerting blow to our academic community” and demanding a transparent review of the decision-making process. “These cuts undermine the stability of our scholars and diminish Harvard’s ability to attract top talent,” the statement read.

Alumni reactions were mixed. On the university’s alumni portal, a thread titled “Harvard’s Future: Support or Opposition?” garnered over 1,200 comments. Many alumni praised the president’s honesty, noting that “Harvard must evolve to stay relevant.” Others expressed fear, recalling a similar move in 2008 that led to a temporary decline in graduate student applications. “We need to see concrete plans that demonstrate how these layoffs will translate into academic excellence,” one alumni wrote.

A local Boston newspaper, the Boston Herald, published a feature article exploring the impact on the local economy. The layoffs affect 15 staff positions that had been headquartered at the Cambridge campus. According to the Herald, local businesses—restaurants, bookstores, and tech start‑ups—have felt the ripple effect as the university’s reduced presence decreases foot traffic in the area.

What’s Next for the Affected Departments?

Harvard’s Office of Communications has issued a schedule of next steps for each department:

• School of Public Health: The department will be merging its epidemiology and biostatistics tracks into a new interdisciplinary center for global health. The center will receive a $10 million seed grant to support research on emerging infectious diseases.

• Department of Economics: The remaining faculty will focus on macroeconomic research that intersects with public policy. A new joint program with the Harvard Kennedy School is slated for launch next year, aiming to bridge theory and practice.

• Office of Student Affairs: The administrative overhaul will streamline services such as counseling, career guidance, and international student support. A portion of the savings will fund a “Student Well‑Being Fund” dedicated to mental health resources.

In a meeting with local business leaders, Harvard’s chief financial officer, Dr. Maya Patel, reiterated the university’s commitment to transparency. “We will publish quarterly reports on how the reallocated funds are enhancing our academic programs and community outreach,” she said.

A Wider Trend?

The layoffs are not an isolated event. Across the country, universities like Yale, Princeton, and Stanford have announced comparable cost‑cutting measures. A recent report by the Association of American Universities (AAU) highlighted a “shifting paradigm” in which elite institutions are redefining their priorities to balance financial sustainability with scholarly impact.

Dr. Klein’s remarks—“Harvard will continue to push the frontiers of knowledge while remaining fiscally responsible”—echo the sentiments of higher‑education leaders nationwide. “The challenge is to navigate a financial reality without compromising the integrity of our academic mission,” he told the Boston Globe.

Looking Ahead

Harvard’s decision to lay off 28 faculty and staff is a stark reminder of the fragility of even the most storied institutions. The university’s plan to reinvest in research and student services will be closely watched by stakeholders across the globe. While the layoffs may create short‑term uncertainty, they also present an opportunity for Harvard to recalibrate its resources, align them with a changing student demographic, and reaffirm its commitment to producing research that tackles the world’s most pressing challenges.

The next months will determine whether these changes will lead to a sustainable and resilient future for Harvard—one that balances the weight of its legacy with the demands of the twenty‑first‑century academic landscape. The story will be unfolding, and the Boston Globe will keep a close eye on every development.