An update on actions in response to budget reductions

Dear colleagues,

Today, valued members of our university community learned that their positions were eliminated as part of the workforce reductions associated with our 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. For those directly affected, and for those who have worked alongside them, this has been an extraordinarily difficult day.

We begin by acknowledging the employees whose positions were eliminated. Throughout their time at the University of Maryland, they contributed meaningfully to our teaching, research and service missions and supported our students, faculty, staff and the state of Maryland. We are grateful for their service and the contributions they made to our community. 

These decisions were in response to significant financial challenges facing the university. Over the past three years the university has experienced compounding financial pressure on both revenues and expenses. For Fiscal Year 2027, reductions in federal funding are projected to decrease revenues by approximately $15 million, and energy costs are projected to increase by approximately $18 million. These are in addition to the more than $104 million in cumulative reductions to our state-funded base budget. 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. 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.

When we informed the campus in April that position eliminations would be required, we projected that as many as 150 positions could be affected through a combination of vacancy eliminations, retirements and layoffs. After accounting for vacant positions and retirements that will not be backfilled, 84 state-funded employees were laid off.

Arriving at these decisions required months of difficult analysis and deliberation across the university. Every effort was made to balance financial necessity with our responsibility to maintain the academic, research, service and administrative functions that are essential to our mission. 

We remain committed to treating every affected employee with respect and compassion throughout this transition. The employees affected by today's actions will have access to comprehensive information about benefits continuation, retirement counseling, career transition assistance, and emotional support through the Faculty Staff Assistance Program. 

We also recognize that this period of uncertainty has been difficult for many members of our community. Faculty and staff who are experiencing stress, grief or concern related to these changes are also encouraged to use the resources available through the Faculty Staff Assistance Program.

The layoff notifications this week conclude the workforce reduction actions we projected for the Fiscal Year 2027 budget planning process. We recognize, however, that the financial environment facing higher education remains uncertain. State budget forecasts continue to indicate significant fiscal pressures in the years ahead, and federal funding conditions remain unpredictable. We will continue to closely monitor these developments and evaluate their impact on the university. While we are not announcing any additional workforce actions at this time, we must remain prepared to respond to changing financial circumstances as they arise. We continue actively pursuing additional ways to increase our revenues and reduce operating expenses.

We know that trust is built through honesty, especially during difficult moments. We remain committed to communicating with our community as we navigate these challenges together.

Thank you for your professionalism, resilience and dedication to the University of Maryland and to one another.

Sincerely,