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Universities Are Cutting Jobs, Even as Their Endowments Grow. Who Pays for the Savings?

By Will Davison Jr.

October 19, 2026 · 4 min read

Harvard’s endowment has reached $68 billion, yet the university has eliminated staff positions. At Temple, Penn State and Utah, financial restructuring is changing how campuses operate—and raising concerns about what students may lose.

More than 100 students and employees gathered at Temple University on October 14 to protest layoffs, staffing shortages and decisions made by the institution’s leadership. Demonstrators accused administrators of cutting resources essential to education while continuing to invest in facilities and institutional priorities. The protest followed the elimination of 236 positions, including approximately 40 employees who were laid off. As Chloe Pabon reported for The Temple News, faculty and staff described larger classes, reduced support and mounting pressure on those who remained employed. Their concerns reflect a growing conflict across American higher education: universities are reducing operating costs while students continue paying for the instruction and services those institutions promise to provide.

Temple’s administration says the reductions are necessary to address recurring expenses that have exceeded revenue. In its fiscal 2027 budget announcement, the university explained that more than 80% of eliminated positions came through retirements, resignations or vacant jobs. Administrators also said they had worked to limit reductions in student-facing roles. Employees protesting the decisions argue that fewer workers still mean fewer resources to manage classrooms, academic programs and daily campus operations. The competing accounts expose a consequential measure of university efficiency: eliminating a position may produce immediate savings, but the responsibilities attached to that job do not necessarily disappear.

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