DePaul, Northwestern, University of Chicago among schools cutting jobs

DePaul University is the latest Chicago-area school to announce job cuts, part of a growing trend across higher education as universities grapple with enrollment declines, rising costs and federal funding uncertainty.

DePaul confirmed it has laid off 114 staff members, roughly 7% of its workforce, citing what it calls “financial headwinds.” University officials say those pressures include a significant drop in international graduate student enrollment, increased demand for financial aid, and rising benefit costs.

Higher education analysts say DePaul’s situation is not unique.

“The universities and colleges of Chicago are major producers of the talent that drives the economy,” said David Baker, executive director of America’s Urban Campus, a nonprofit consortium representing Chicago-area colleges and universities.

International enrollment declines a key factor

Experts point to a sharp decline in international students as a major contributor to the budget challenges facing many institutions. Baker says federal visa slowdowns and uncertainty have had an immediate impact.

“Many students backed off and decided not to come this fall,” Baker said. “That was an immediate effect on the schools’ enrollments and their budgets. That’s what affected DePaul and many of the other schools.”

International students often pay higher tuition, making them a critical revenue source for tuition-driven institutions.

Other Chicago universities facing cuts

DePaul’s layoffs follow similar moves at other major Chicago universities:

• Northwestern University announced earlier this year it would eliminate more than 400 staff positions, citing mounting financial challenges and a freeze on $790 million in federal funding. The university said nearly half of the eliminated roles were already vacant.

• The University of Chicago has announced plans to cut $100 million in spending, with at least 100 non-clinical staff members expected to take voluntary early retirement. Several Ph.D. programs will also pause admissions as the university addresses a growing deficit.

Baker says decisions at the federal level are playing a major role in the timing and scope of the reductions.

“Many of the schools are taking very unfortunate moves now to resize themselves, to try to work through this,” Baker said.

Economic ripple effects for Chicago

Higher education leaders warn that sustained enrollment declines and staffing cuts could have broader economic consequences for the region, particularly as universities supply much of the area’s workforce pipeline.

Still, Baker says universities are working with lawmakers to navigate the uncertainty.

“Most of the schools have been working hard with their legislators and with people in Washington to develop strategies associated with the changes coming from Washington,” he said.

While the current moment is challenging, higher education leaders remain cautiously optimistic about long-term stability.