California higher education layoffs: UC, Stanford and Cal State universities cut, freeze jobs

Tina Chen, The Mercury News on Aug 6, 2025

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Stanford University will lay off at least 363 employees this fall as part of $140 million in budget cuts due to rising costs and changes in federal funding, including a sharp increase in the endowment tax.

A WARN notice filed July 31 shows affected positions span academic operations, IT, libraries and administration. University officials cite inflation and reduced federal support as key reasons behind the cuts, which aim to ensure long-term financial stability.

Stanford is not the only university in California to announce layoffs this year. In March, the University of California announced a system-wide hiring pause in response to potential funding cuts. Speaking at a board meeting, university President Michael Drake said that the reasons behind this act are federal funding reductions and state budget cuts.

The University of Southern California also will implement layoffs and cost-cutting measures due to a budget shortfall of over $200 million, according to an anouncement last month by Beong-Soo Kim, the university’s interim president.

In a letter to faculty and staff, Kim expressed concerns about financial pressures from declining federal support for research, largely due to the Trump administration’s cuts to grant funding, and a possible drop in international student enrollment.

Several universities in the California State University system are also laying off staff this year due to Gov. Gavin Newsom’s initial 2025-26 budget proposal, which included an almost 8% cut to CSU system budget, totaling $375 million, according to the California Faculty Association.

Although the proposed reduction has since been scaled back to a 2.82% cut, or $143.8 million, the CSU system and campuses such as San Francisco State still face serious financial challenges due to the decreased funding.

San Francisco State announced in March that it will eliminate three of its 13 athletic teams to save up to $1 million annually, as part of broader efforts to reduce spending. The women’s indoor track and field, baseball and men’s soccer teams officially were eliminated July 1.

The university faces a projected $25 million budget shortfall next year, largely due to declining enrollment and anticipated cuts in state funding reduction to the CSU system.

Facing a projected $24 million deficit for 2025-26 due to a 38% drop in enrollment over the past decade, Sonoma State University also announced major cuts in January. Plans include laying off up to 46 faculty members, four managers, 12 staff, and possibly 55 lecturers.

The university also intends to eliminate several academic departments and majors, including art history, economics, and women’s studies, and discontinue all 11 NCAA Division II athletic programs.

The funding cut and decreased enrollment rate also caused Cal State Channel Islands to lay off 13 employees amid declining enrollment and state cuts. Cal State Dominguez Hills also announced layoffs earlier this year, without giving an actual number of positions affected.