Looming Layoffs

With the endowment down sharply and employee compensation accounting for nearly half of University expenses recently, the administration plans to trim staff jobs.

Return to main article:

Harvard has begun downsizing its workforce. On May 11, Marilyn Hausammann, vice president for human resources, announced that 534 of 1,628 staff members eligible for an early-retirement incentive—33 percent—had accepted the offer. (The Faculty of Arts and Sciences alone offered early retirement to 521 staff members, of whom 30 percent accepted—a small fraction of its nearly 3,700-person staff.)

The retirements will lessen, but not eliminate, layoffs, given pressure to cut spending. As of October 2008, Harvard employed about 12,950 full-time-equivalent non-faculty staff members—coincidentally, nearly 500 more than were employed a year earlier, and almost as many as are retiring early. For the year ended June 30, 2008, compensation accounted for 48 percent of University expenses ($1.7 billion). Hausammann noted, “Although Harvard’s schools and departments are now analyzing the impact of the pending retirements on their budgets…for many schools further reductions in force will likely be necessary to meet budget targets….” FAS dean Michael D. Smith’s letter on the same date reiterated an earlier warning. Although the efficiencies outlined on the FAS website were “staffing neutral,” he wrote, “the financial challenge before us makes it increasingly likely that staff reductions will eventually be necessary.”

The Student Labor Action Movement (SLAM), which led the living-wage campaign for lower-paid University employees at the beginning of the decade, re-emerged around the slogan, “Greed is the new Crimson” (a play on Harvard’s environmental theme), and organized rallies against layoffs (see www.hcs.harvard.edu/slam). SLAM leaflets distributed before the May 19 faculty meeting suggested alternatives (graduated pay reductions of 5 percent to 15 percent and reduced pension contributions for employees earning more than $100,000 per year, reduced paid vacation time) and detailed cuts adopted by senior administrators at Brown, Stanford, and other universities.

Layoffs were widely expected to be announced beginning in  late June, after the Commencement crowds dispersed. For updates, consult www.harvardmagazine.com.

You might also like

Five Questions with Tien Jiang

How brushing and flossing can protect your heart

Five Questions with Nancy Gibbs and Thomas E. Patterson

The Washington Post laid off more than a third of its journalists. Does this signal a new era for newsrooms?

Harvard Magazine Questionnaire: The True Cost of Grade Inflation

A faculty committee is recommending changes to grading at Harvard College to limit an overabundance of A's. Add your voice to the conversation.

Most popular

Summers Will Retire as Harvard Professor

The former University president is stepping down in the wake of Harvard’s Epstein probe.

The True Cost of Grade Inflation at Harvard

How an abundance of A’s created “the most stressed-out world of all.”

Harvard’s Epstein Probe Widened

The University investigates ties to donors, following revelations in newly released files.

Explore More From Current Issue

Modern building surrounded by greenery and a walking path under a blue sky.

A New Landscape Emerges in Allston

The innovative greenery at Harvard’s Science and Engineering Complex

Graduates celebrate joyfully, wearing caps and gowns, with some waving and smiling.

Inside Harvard’s Most Egalitarian School

The Extension School is open to everyone. Expect to work—hard.

A black primate hanging lazily on a branch in a lush green forest.

What Bonobos Teach Us About Female Power and Cooperation

A Harvard scientist expands our understanding of our closest living relatives.