Stanford Plans 363 Layoffs Amid $140M Federal Funding Cuts

Stanford University will lay off 363 employees this fall as part of $140 million in budget cuts, citing rising costs and major changes in federal policies—specifically, reduced research funding and a substantial increase in the endowment tax under the Trump administration. The layoffs, affecting roles across administration, research, campus operations, and more, are set to begin September 30, and further staff reductions may follow if financial pressures persist. University officials attribute these actions to a challenging fiscal environment caused by federal policy shifts, including the loss or freezing of hundreds of federal grants and an endowment tax hike from 1.4% to as high as 21%, which could cost Stanford hundreds of millions of dollars annually. The university has stated its commitment to supporting affected employees and maintaining core academic priorities like undergraduate financial aid, much of which is funded by the endowment now subject to higher taxes. Local leaders have criticized the layoffs as a blow to families and the regional economy. Despite the severity of the cuts, Stanford leaders emphasize that these measures are necessary to protect the institution’s long-term goals amid ongoing economic uncertainty.