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Northwestern University announces 425 positions to be laid off amid financial challenges

COOK COUNTY, ILLINOIS, JUL 29 – Northwestern University aims to reduce staff expenses by 5% amid a $790 million federal funding freeze and rising costs in healthcare and labor, officials said.

  • On Tuesday, Northwestern University announced it will cut about 425 staff positions, half of which were vacant, reducing staff expenses by about 5%.
  • Mounting cost pressures forced the University to freeze over $790 million in federal funding earlier this year, with personnel costs making up roughly 56%.
  • Implementing an early June hiring freeze and benefits changes, the University reduced nonpersonnel expenses by 10%.
  • Despite layoffs, the University faces continuing impacts from frozen federal funds, with at least 98 stop-work orders and 51 grant terminations while spending $10 million weekly on research.
  • The University hopes to restore frozen federal research funding soon, with the White House viewing Columbia University's $200 million fine as a negotiation blueprint.
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Axios broke the news in Washington, United States on Tuesday, July 29, 2025.
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