Those who are among the unfortunate individuals being terminated cannot help but look at the size of the endowment and wonder what message this round of layoffs sends about Stanford's priorities. Employees who are temporarily laid off may continue medical benefits and people who have permanently lost their jobs will be eligible for career transition services, severance pay and continued medical benefits.Stanford still plans to bring undergraduates back to campus in the fall with numerous safeguards in place, including mask requirements, regular testing, temperature checks at dining halls and contact tracing in the event of infections. Looking ahead, Stanford has asked all university units to prepare budget plans based on a scenario with a 15% reduction in funding from endowment payout and a 10% reduction from general funds. California's colleges and universities are also awaiting specific reopening guidance for higher education institutions from Gov. Advertising Info 5:41 PM, May. Not even law firms at the top of the heap could avoid making cuts. Of those applicants who were admitted, 82% chose to enroll. Stanford University has laid off 208 employees as part of workforce cuts under its recently approved 2020-21 budget plan. I suspect they will mostly lay off the worst-paid employees, including secretaries and facilities support such as custodians and groundskeepers. Specifically, Tessier-Lavigne said that the school is forecasting $267 million in financial losses from March 1st to August 31st and potentially greater losses in the following fiscal year. Layoffs may be temporary or permanent, and may occur because of budgetary reasons, lack of work, reorganization, or redefinition of the universityâs or the departmentâs needs. Follow Palo Alto Online and the Palo Alto Weekly on Twitter @paloaltoweekly, Facebook and on Instagram @paloaltoonline for breaking news, local events, photos, videos and more. “We don’t yet know the scale of job reductions. Most incoming freshmen graduated in the top quarter of their high school class. It’s an ideal time to get rid of any residual inconvenient conservatives on the faculty. But the resurgence of COVID-19 cases locally and across the state could disrupt that plan â and lead to further layoffs, Tessier-Lavigne said. The university is substantially increasing the payout from the endowment next year. Events staff at Stanford, who set up and work the large gatherings that have now been banned by the state , have been guaranteed work for the next few weeks, Preciado said. "Because salaries are such a large component of the budgets of all units, unit leaders have had to make difficult choices about their workforces over the next year.". Failure to do this will be sufficient cause for removal from the University." Terms of Use Time to read: about 2 minutes. Stanford plans to provide final allocations from the endowment and general fund by June so budgets can be finalized in July. and MSPA first and ⦠Stanford is encouraging undergraduate students and their families to make back-up plans for fall housing, to purchase refundable tickets for travel and to bring to campus no more than two suitcases and a backpack â "in other words, what a student can reasonably carry," university leaders said. Stanford University continues to tighten its budget to address lost revenue due to the pandemic shutdown, including permanently laying off 208 employees, putting 30 additional employees on furlough and eliminating more than 400 vacant positions. Sponsored content Registrar's Office. "If the pandemic continues to worsen in our region and we are not allowed to bring back students as planned, there could be further significant impacts on our operations and revenue streams. The permanent layoffs include reductions to Stanford's athletic staff, announced in July. Stanford has not made any final decisions about how classes will be conducted in the coming academic year. The university previously announced layoffs of nearly 1,000 dining-service employees and adjunct professors, who won't be returning in the fall. All rights reserved. "Although cuts to non-financial aid budgets have been less deep than we initially feared, they have still meant that units and departments have needed to make reductions in spending," Tessier-Lavigne wrote. Express / Weekend Express students. “I know this is difficult news to hear, and it is difficult for me to share, knowing the dedication and contributions of the people across our Stanford workforce,” he added. Interim policy updates as of May 27, 2020. Both nationally and here at Stanford, employees have been wondering what coronavirus-related issues will mean for their jobs and pay. 2 of 2 Medical researchers perform serology, testing blood samples to find out whether someone already had and recovered from COVID-19, in Stanford University s Clinical Virology Lab in March 2020. "The permanent layoffs include reductions to Stanford's athletic staff, announced in July.Employees who have been laid off, either temporarily or permanently, will stay on the payroll for 60 days, he said. Blogs As a result, at this time we cannot exclude the possibility of further layoffs, temporary or permanent, at some future date, although we earnestly hope they will not be necessary," he wrote.Stanford is encouraging undergraduate students and their families to make back-up plans for fall housing, to purchase refundable tickets for travel and to bring to campus no more than two suitcases and a backpack â "in other words, what a student can reasonably carry," university leaders said.The university said it will provide another update on plans for the fall quarter in mid-August.California's colleges and universities are also awaiting specific reopening guidance for higher education institutions from Gov. Why do schools have these massive endowments if they’re not for use in a time of emergency? To our Stanford community, Over these last many weeks, our university community has persevered through a time of disruption and uncertainty. Don't miss out on the discussion! TheSixFifty.com, © 2020 Palo Alto Online Mobile site. Unfortunately, some temporary and permanent layoffs could not be avoided,â said Miranda. Undergraduate Admission at Stanford University--one of the world's leading research and teaching institutions. students. 4 Embarcadero Media file photo by Sinead Chang. Doesn't the university have lawyers and mechanisms to revise how the endowment is administered in extraordinary circumstances? Even with a $27 billion endowment, Stanford University expects layoffs will be 'unavoidable' Published Fri, May 29 2020 1:35 PM EDT Updated Fri, May 29 ⦠“To be clear, we will provide pay continuation through August 31 in all cases, and we will be providing more information about assistance the university will provide for anyone we’re unable to retain.”. Use the links at the top of the page to Register or Login. All rights reserved. Stanford still plans to bring undergraduates back to campus in the fall with numerous safeguards in place, including mask requirements, regular testing, temperature checks at dining halls and contact tracing in the event of infections. They are also a consequence of how leaders run their business. Uploaded: Wed, Aug 5, 2020, 9:26 am We hope they will be limited, but they will be driven by the program needs and budget capacity of individual units. Stanford plans to provide final allocations from the endowment and general fund by June so budgets can be finalized in July. August 17 (Mon) Axess opens for course enrollment for M.D. Uploaded: Wed, Aug 5, 2020, 9:26 am "Because salaries are such a large component of the budgets of all units, unit leaders have had to make difficult choices about their workforces over the next year. Promotions Home & Real Estate A person walks towards the main quad during a quiet morning at Stanford University on March 9, 2020 in Stanford, California. Find comprehensive coverage on the Midpeninsula's response to the new coronavirus by Palo Alto Online, the Mountain View Voice and the Almanac here. Mountain View Voice During the 2008 recession, for instance, Whole Foods laid off fewer people than Stanford University, which has a multibillion-dollar endowment. Stanfordâs commitment to continue pay for employees March 16, 2020. More than 300 employees out of 1,000 were permanently let go at food service management company Bon Appétit in Palo Alto since October, according to the WARN notice. The proliferation of well-paid administrators (each with his/her own retinue of assistants and secretaries) will continue, as will the grievance establishment. August 17 (Mon) Stanford Bulletin publishes academic year 2020-21 degree requirements; ExploreCourses opens with Autumn class offerings August 17 (Mon) Axess opens for course enrollment for M.D. Community Calendar 100 Workers Laid Off At Stanford University: Coronavirus - Palo Alto, CA - The food service and custodial workers were laid off after class schedules were adjusted. A message from President Marc Tessier-Lavigne: Our financial future May 27, 2020. A&E © 2020 Palo Alto Online. Circulation & Delivery, About Us Stanford Medicine leaders offered updates about local testing for COVID-19, as well as information about transmission and treatment of the respiratory disease, during a virtual town hall on March 12.. Embarcadero Media file photo by Sinead Chang. The university has also paused approval for new capital projects. We hope they will be limited, but they will be driven by the program needs and budget capacity of individual units.”. Sorry, but further commenting on this topic has been closed. Though the university's board of trustees approved a budget plan for 2020-21 that includes a 3% increase in endowment payout to support student financial aid, a 10% decrease in payout from other endowment funds to "mitigate market volatility" and the tapping of $150 million of unrestricted endowment funds to help balance the budget, the workforce cuts were still necessary, he wrote. Categories: Finance, Leadership communications, President, Workplace & HR Last modified on October 1, 2020. Stanford has been working on guidelines and new policies in response to the changing situation. But is it possible to retain employees in such difficult economic times? Layoffs may be massive if the university decides to shut down all residence and dining enterprises. https://diversityandaccess.stanford.edu/ I wonder how targeted the layoffs are at these wealthy universities. In June, the university Board of Trustees approved a budget plan for 2020-2021 that maintained financial aid for students, though the university said it ⦠... temporary and permanent layoffs, and the ⦠Stanford University has laid off 208 employees as part of workforce cuts under its recently approved 2020-21 budget plan. With a $27 billion endowment, the obvious question is why doesn't the Stanford board of trustees decide to simply absorb the expected losses as a "once in a lifetime" event? July 24, 2020: Investor Place: Schlumberger Layoffs: SLB to Cut 21,000 Jobs Amid Oil Woes. Special Pubs and M.S.P.A. August 17 (Mon) Stanford Bulletin publishes academic year 2020-21 degree requirements; ExploreCourses opens with Autumn class offerings. Stanford University, one of the world's leading teaching and research institutions, is dedicated to finding solutions to big challenges and to preparing students for leadership in a complex world. Stanford University typically accepts and attracts "A" average high school students. President Marc Tessier-Lavigne announced the cuts in a message to the campus community last week. and M.S.P.A. As a result, at this time we cannot exclude the possibility of further layoffs, temporary or permanent, at some future date, although we earnestly hope they will not be necessary," he wrote. "If the pandemic continues to worsen in our region and we are not allowed to bring back students as planned, there could be further significant impacts on our operations and revenue streams. The largest number of layoffs occurred last Wednesday, when the University of Akronâs Board of Trustees voted unanimously to cut a total of 178 positions, including 96 ⦠Print Edition/Archives “At this time, we expect to be able to communicate more detailed decisions about layoffs in late July.”. Employees who are temporarily laid off may continue medical benefits and people who have permanently lost their jobs will be eligible for career transition services, severance pay and continued medical benefits. The university said it will provide another update on plans for the fall quarter in mid-August. students. 02, 2020 This article has been updated to clarify that Stanford Health Care cook Sarah Jane Von Wettberg chose a mix of paid and ⦠However, most of the endowment is restricted in its use and cannot be used to support deficits. It is yet to be seen how these layoffs will play out at Stanford⦠Gavin Newsom. AUTUMN QUARTER 2020-21. Due to violations of our Terms of Use, comments from this poster are only visible to registered users who are logged in. The university would have to borrow the money and may have to anyway. https://vpge.stanford.edu/diversity-initiatives/commitment. August 24 (Mon) M.D. Sign up to be notified of new comments on this topic. 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