University of Maryland cites "financial challenges" for laying off more than 80 employees

More than 80 University of Maryland, College Park (UMD) employees were laid off, school leaders wrote in a letter, citing "financial challenges."

Darryll Pines, the university's president, and other top officials stated that workforce reductions were necessary for the Fiscal Year 2027 budget planning process.

"We recognize both the personal and professional impact these decisions have on our colleagues, their families, their teams and the broader university community," the letter read. "For those directly affected, and for those who have worked alongside them, this has been an extraordinarily difficult day."

Addressing financial challenges

University leaders claim the "compounding financial pressure on both revenues and expenses" has been ongoing for over the past three years.

Officials anticipate that reductions in federal funding will decrease revenues by about $15 million, while energy costs are projected to increase by about $18 million. 

The letter stated that the university's state-funded base budget is expecting more than $104 million in cumulative reductions.

UMD said that 84 state-funded employees were laid off, and vacant positions and retirements will not be backfilled. However, the university had initially projected that as many as 150 positions could be impacted through a combination of vacancy eliminations, retirements, and layoffs. 

"Throughout this period, we have pursued a wide range of measures to reduce expenses and strengthen revenues while preserving our ability to deliver on our core mission," the letter stated. "These efforts included reducing discretionary spending, limiting hiring, eliminating vacant positions through attrition, and carefully reviewing expenditures across the institution. Despite these actions, additional workforce reductions became necessary to ensure the university's long-term financial sustainability."