News Summary
Johnson & Wales University has announced the layoff of 91 employees due to a $34 million budget deficit. The layoffs affect both faculty and staff and come as enrollment has drastically declined over the years. The school’s chancellor emphasizes the need for alignment between operational size and student numbers to ensure financial sustainability. This decision is part of a broader strategy to address ongoing financial pressures and restructure the university’s future operational framework.
Providence, Rhode Island – Johnson & Wales University (JWU) has announced the layoff of 91 employees across its campuses in Providence, Rhode Island, and Charlotte, North Carolina, as part of a strategic workforce reduction aimed at addressing a substantial $34 million budget deficit. The layoffs, which affect both faculty and staff members, were disclosed in a letter to faculty and staff by Chancellor Mim Runey on May 5, 2025.
The decision to reduce the university’s workforce comes in light of serious financial challenges that JWU has been grappling with, particularly a significant decline in student enrollment. Over the past decade, enrollment at JWU has decreased by 54%, dropping from a peak of 17,294 students in 2011 to approximately 8,000 in recent years. Due to this sharp decline, the university can no longer sustain the size of its workforce that was established during periods of higher enrollment.
Chancellor Runey stated that the operational size of the university must align with its current levels of student enrollment. The institution has been facing a persistent structural imbalance between revenues and expenditures, which has played a major role in creating the operating deficit. The financial situation has forced JWU to reevaluate its staffing needs to ensure the sustainability of its operations.
In an effort to mitigate its budgetary issues, JWU has previously implemented a series of measures, including the closure of two campuses and the sale of underutilized real estate. These actions reflect the university’s ongoing commitment to addressing mounting financial pressures, which have resulted in a dramatic decline in revenues since 2014. The university’s revenue dropped from $529 million in 2014 to $344 million by 2021, exacerbating the existing financial challenges.
Runey highlighted that JWU has nearly exhausted its one-time cash reserves, emphasizing the necessity of workforce cuts as a means to manage what constitutes the largest operational expense for the university. The recent layoffs are part of a broader strategy to curtail further financial decline and to establish a balanced budget for the future.
In addition to the layoffs, JWU plans to delay employee raises and continue restructuring its operational model to better fit its financial realities. The university has been responding to various external factors affecting higher education, including demographic shifts and changing public perceptions regarding the value of a college education.
While there have been some promising indicators regarding positive trends in enrollment, the university does not foresee a return to pre-deficit enrollment levels in the near future. The measures being adopted aim to pave a path for JWU’s future under a more sustainable operational framework, ensuring that the university can continue to serve students amidst a challenging financial landscape.
This restructuring initiative is expected to be part of a longer-term plan to stabilize and strengthen JWU, seeking both to improve its financial health and to position itself effectively for the evolving landscape of higher education. As JWU moves forward, it remains focused on adapting to the challenges of the modern educational environment while striving to maintain quality and accessibility for its student population.
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- WPRI: JWU Laying Off 91 Employees
- Wikipedia: Johnson & Wales University
- Boston Globe: JWU Layoffs
- Google Search: JWU 2025 Layoffs
- Patch: JWU Expands Free Tuition Program
- Encyclopedia Britannica: Higher Education
- Providence Journal: JWU Degrees in Three Years
- Google News: Johnson & Wales University
