And more layoffs to come.
Here is the article from LA Times posted today:
https://www.latimes.com/california/story/2025-07-15/usc-budget-deficit-layoffs
The University of Southern California (USC) is preparing for a round of layoffs and other cost-cutting actions in response to a serious financial crisis, according to a letter issued by interim President Beong-Soo Kim. The university is now dealing with a budget deficit that exceeds 200 million dollars, which leadership attributes to a "volatile external environment" and major changes in funding streams.
A central factor behind the deficit is a sharp decline in federal support for USC’s research and academic programs. This reduction is linked to the Trump administration’s broader efforts to scale back government grants, which has significantly impacted universities across the country. Additionally, USC is bracing for a possible drop in international student enrollment, which poses another substantial financial threat, since international students typically pay higher tuition and contribute significantly to the university's revenue.
While the exact number of expected layoffs has not been disclosed, Kim’s statement made it clear that the university will be implementing personnel cuts and tightening its budget in multiple areas. The message to faculty and staff emphasized that these steps are necessary to "deal decisively" with the financial shortfall and stabilize the institution’s operations going forward.
This announcement places USC among a growing list of higher education institutions facing budgetary stress amid shifting federal priorities, declining enrollments, and broader economic uncertainty. The letter did not provide a timeline for when layoffs would begin or specify which departments would be most affected, but it signals a period of austerity and organizational change at one of California’s most prominent private universities.