Boston University announced on July 7, 2025, that it will lay off approximately 120 employees and eliminate 120 vacant positions—affecting about 1% of its workforce—to reduce operating costs by 5% for fiscal year 2026.
BU administration cited a combination of federal funding cuts, rising inflation, evolving student demographics, and technology adaptation costs as driving factors behind the decision. News outlets reported that the layoffs span multiple departments, although specifics remain undisclosed.
President Melissa Gilliam and senior officials described the move as a “day of loss,” but emphasized that the restructuring is essential to secure the university’s long-term academic and research mission. They assured affected staff of personal career support, including severance and transitional services.
This measure mirrors actions taken recently by other major universities—Harvard, Stanford, Cornell, and public institutions—grappling with similar financial headwinds. These institutions are also aligning budgets in response to reduced government backing, inflationary pressures, and shifting enrollment patterns.
At BU, operating expenses have outpaced revenue growth: since 2017, costs increased by about 5.6% annually, while revenue grew at roughly 4.8%—a trend BU’s student newspaper highlighted. The university previously froze merit-based pay increases to help constrain expenditures.
While BU is addressing the staffing cuts, the institution confirmed no changes to tuition rates at this time. Layoff notifications are being delivered directly to employees, with flexible options for affected roles.
As federal funding continues to fluctuate and demographic shifts reshape demand for traditional campus programs, BU and its peers are under pressure to reimagine financial models.
