Dive Brief:
- Duke University is offering voluntary buyouts for employees and has frozen hiring as it braces for federal funding cuts, the institution said Wednesday.
- The North Carolina institution signaled that layoffs were likely in the coming months, but said it is “pursuing several employment actions now in hopes of reducing the scale of involuntary separations later this summer.”
- The moves are in response to federal cuts and policy shifts, which could translate into funding losses for Duke between $500 million and $750 million, university officials said during an internal webinar Wednesday, according to media reports.
Dive Insight:
Historically, much of Duke’s research enterprise has been devoted to work on behalf of the government. Federal grant support made up nearly three-quarters of the $1.5 billion in sponsored research funds that Duke received in fiscal 2024, much of it going toward health science.
The university, in its latest financial statement, described its medical school as “one of the largest biomedical research enterprises in the country.” And funding just from the U.S. Department of Health and Human Services — which houses the National Institutes of Health — accounted for 58% of all of Duke’s sponsored research funding.
The National Science Foundation and U.S. Department of Energy also accounted for tens of millions of dollars in the university’s funding.
Since President Donald Trump retook office, those agencies and others have been cutting and delaying grant awards at a frantic pace, including moves to cap reimbursement for indirect research costs at NIH and the Energy Department. Both funding caps have been blocked in courts — at least for now — but the Trump administration is continuing to fight the legal cases against the policies.
Uncertainty over the funding will likely loom for some time to come.
For Duke, the NIH indirect cost cap would mean $194 million in lost funding each year, President Vincent Price and other leaders said in February.
“Much is at stake,” the officials said then. “Our nation’s world-leading research enterprise has been enabled by — and will only be sustained by — partnership and co-investment from both the government and higher education.”
They also signaled at the time that “careful planning and difficult decisions” could lie ahead.
Today, Duke is trying to cut $350 million from its budget, according to reports of the university’s presentation, as it grapples with funding gaps under the Trump administration.
As it trims down, Duke has paused capital spending on buildings, renovations and other projects that are “not fully funded or deemed essential,” the university said Wednesday.
It’s also reviewing universitywide programs — such as technology adoption, off-campus real estate and on-campus space consolidation — for potential cost-savings.
Employee benefits could also be on the chopping block.
“A study is also under way to assess how certain changes to the university’s benefits may generate savings while protecting the program’s strong competitive position,” Duke said.
However, Executive Vice President Daniel Ennis told employees Wednesday that the university still plans to give out merit raises and will not change its tuition grant program for children of employees.
Universities around the country have been scrambling in recent months to open breathing room in their budgets to cope with the uncertainty and disruption created by cuts and delays at federal agencies. Many have frozen hiring and budgets to maintain financial flexibility while others have laid off employees to cope with cuts.
