As part of what is being characterized as “modernization” and a “strategic effort to better prepare the institution for the long term,” the University of Utah has announced a significant reduction of its workforce over the coming year.
In a blog post at the school’s weekly newsletter @theU, officials said between 5 percent (285 jobs) and 15 percent (855 jobs) of the university’s 5,700-person, non-faculty and non-clinical (healthcare) workforce would be cut. The post said the jobs would be “consolidated, simplified or eliminated.” Leaders have not made decisions about how many positions will be cut, stating the scope and timing will depend on job functions.
Including faculty positions and those employed by the university’s healthcare infrastructure and hospitals and clinics, the school’s total workforce numbers more than 47,000 people. The announcement said that University of Utah Health will follow a similar path of reduction in parallel with the broader university effort.
The new strategy is apparently driven in part by projections that college-aged students and state college enrollment are both poised for a multi-year decline beginning early in the next decade. According to estimates from the Western Interstate Commission for Higher Education, Utah’s population of high school graduates will drop by 6 percent from 2023 to 2041. At the beginning of the current academic year, the UofU enrolled 38,261 students, an all-time high for the university ahead of projected declines.
School officials are also hoping to rein in skyrocketing operating costs. The university’s $8.6 billion operating expenses for fiscal 2025 reflected a 62 percent spike from five years earlier. Operationally, the UofU lost $448.6 million in the most recent year, 80 percent higher than fiscal 2021.
However, with state funding, investment income and other nonoperating revenue sources added, the university showed a $921 million total surplus in fiscal 2021.
In its latest treatise, the university said expenses have been growing faster than revenues, “a trajectory that is not sustainable over the long term.” Leaders emphasized the need to grow margins in that environment, to provide money to invest in the University of Utah’s mission. As it stands, the institution’s operating margin is estimated at 5.3 percent for fiscal 2027, 20 basis points below 2025 levels, according to an August presentation in preparation for the announcement.
“The University of Utah has never become stronger by standing still,” said President Taylor Randall in the blog post. “One of the most important responsibilities of being a leader is stewardship. We inherited a remarkable university that was shaped by those who came before, and we have an obligation to leave it stronger for those who follow.”
“Like colleges and universities across the country, the University of Utah faces some of the most significant challenges in its 176-year history,” the post continued. “Public trust in higher education and belief in the need for a college degree have declined. The federal government has scaled back research funding. And Utah’s elected leaders continue to push higher education to reduce costs and reinvest savings in high-demand degree programs and emerging fields of study.”
The university post emphasized that while the UofU remains financially strong, maintaining healthy operating margins is critical to its ability to invest in faculty, students, research, facilities and other strategic priorities. Leaders said acting now, from a position of strength, provides more options and allows the UofU to make thoughtful changes rather than waiting until financial pressures become more acute.
“Every dollar and every hour we can redirect from unnecessary complexity is capacity we can put back into our mission of creating impact,” Gary McArthur, university chief financial officer said in a statement.
In addition to the workforce reduction, the university is taking other budgetary control initiatives.
The school announced in August it would it would cut back retirement benefits for newly hired employees, in line with its “university-wide modernization effort.”
Along with enrollment and cost pressures, the university is also navigating changes to the state’s funding model. Last year, it announced it would ax 81 courses and degree programs as part of a legislative mandate to cut costs and reinvest in high-demand fields.
The university will also close its satellite Sandy campus on Jan. 1 in response to the state directive to reallocate nearly $20 million in funding. The closure is in response to a state directive to reallocate nearly $20 million in funding to programs designed to meet workforce needs. The decades-old Sandy Center, located 15 miles south of the university, primarily offers general education courses that are also available at the main campus and online.
Other modernization efforts include changes in the school’s Office of Advancement; centralization of the colleges of Liberal Arts & Sciences; institution of Operational Excellence initiatives; more efficient centralized and integrated human resources, IT, financial services, marketing and communication functions; and a new model for university athletics through the establishment of Crimson Brand Partners, led by a non-university private equity firm. The school’s retirement contribution formula has also been restructured to free up funding for more competitive employee salaries.
“Uncertainty about job changes and organizational structure creates deeply personal questions for employees and their families,” said Jeff Herring, chief human resources officer at the UofU. “The teams doing this work are moving quickly and thoughtfully to meet the goals of our modernization project while always remembering that our employees are the university’s greatest asset. There will be changes, I want to be clear about that. But anyone impacted will be supported throughout the process.”
— Art to place (from the doc; remove before publishing):
Please use Adobe Stock photo No. 561975013 — The sign at the head of President’s Circle on the University of Utah Campus is shown in a recent photograph. The school has announced efforts, including significant staff reductions, to prepare for future student reductions and budgetary pressures. (Adobe Stock photo)
