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Penn State plans layoffs amid budget deficit

President Neeli Bendapudi has said the university is in a “vulnerable state” but not a “financial crisis.”


March 20, 2023
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Old Main at Penn State University in State College, Pennsylvania, which is planning layoffs.
Georgianna Sutherland / For Spotlight PA
A Penn State administrator directed university leaders representing nearly all departments to submit the number of employees they plan to lay off by the end of June, according to internal communications obtained by Spotlight PA’s Wyatt Massey.

Justin Schwartz, interim executive vice president and provost, directed chancellors, deans, and other university leaders on the Academic Leadership Council to provide the administration with “your best estimate of the total number of positions from your unit that you predict are necessary to eliminate during this fiscal year” by March 31, according to the messages.

The university declined to provide an approximate timeline for when employees will know if their job is being cut.

“Any reduction in workforce is not something University leadership takes lightly,” the university said in a statement to Spotlight PA. “These are very difficult decisions that are being reviewed in a careful manner and the hope is to keep these changes to a minimum. Attrition is obviously a preferred measure for reductions in employee numbers.”
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