Citing the fiscal deficit of more than $200 million, the interim president of the University of Southern California said Monday that private numbers of layoffs and other belt tightening measures will be implemented to “decisively address the financial challenges.”
Beong-Soo wrote in a letter to faculty and staff that USC is “experienced with significant changes in federal assistance” for research and other programs.
At the same time, Kim said USC’s costs have “significantly surpassed” revenue over the years.
Recent cost cuts, including the employment freeze announced in March, have not been sufficient. Kim said by the end of the fiscal year that ended in June, the university’s deficit had skyrocketed to over $200 million, rising to prominent levels from $158 million the previous year.
In addition to the layoffs, Kim said USC will sell unused properties and adjust the compensation of the highest-income earners of any other move. He added: “We absolutely believe that by taking these harsh actions, USC is stronger and more prepared to continue to change lives and benefit society in the future.”
Universities across the country have been caught up in recent months as President Trump overturned decades of higher education norms, threatening or withholding billions of dollars of federal funds.
In March, the University of California announced a freeze and cut system-wide employment in several areas amid Trump’s threat of cutting research funding. In late June, Stanford revealed $140 million in layoffs associated with general operating fund cuts for the 2025-26 academic year, citing “significant uncertainty about how federal support for universities will evolve.”
And last week, Boston University announced that it would give around 120 staff pink slips to cut its budget by 5%.
Kim said a USC-sized university could lose federally sponsored research funds worth more than $300 million a year.
Referring to today’s “unstable external environment,” Kim said the university “continues to advocate for the importance of research and our academic mission,” but added that “we cannot rely on hopes that federal support will return to historical levels.”
Some people at USC see something different than the interim president.
In the interview, two university employees acknowledged how serious the loss of federal funds is, but also cited some expensive projects that appear to have hurt USC’s finances. These efforts include the construction of the Bloom Football Performance Centre, which broke in November. Establishing enhanced security measures in the aftermath of the Spring 2024 protest against Israeli war in Gaza. The university’s capital campus was opened in Washington, DC in 2023.
Sanjay Madhav, an associate professor of practice at USC Viterbi Engineering School, said these and other expensive ventures have been part of a “square decisions” by university leadership in recent years.
“The administration has made many irresponsible financial decisions,” said Madhav, who is involved in the unionist efforts for non-tenure-track professors. “Normal employees ultimately pay a price for poor decisions.”
USC’s capital campus in Washington, DC
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In an email, The Times explained some of the criticisms and asked the university for comment. In response, a USC spokesperson said the “available information” was in Kim’s letter.
The interim president did not indicate how many people would lose their jobs or provide other details about the cut. “The fact that USC does not just have to take these difficult actions doesn’t disappoint or painful the news,” he said.
Kim’s letter comes days after the Times was reported in trim within USC’s athletics division. This eliminates six layoffs and another six positions. Among the departures was Paul Perrier, executive senior associate athletic director.
It is not clear whether the Athletics Division cuts are part of the layoffs explained by Kim. Asked about these cuts, a university spokesperson once again introduced the Times in a letter to the interim president.
Filterner, who has been working at the university since 2009 and associate director at USC Housing, said the uncertainty about the size and size of the looming job cuts has slowed morale. He also serves as president of USC Staff Assembly, advocating for employees.
“The morale on our staff is in ruins, and I think it’s the worst thing I’ve ever had in the 16 years I’ve been here,” said Turner, who spoke as an employee rather than formal ability. “I think everyone is just hurting some kind of victory or aggressive momentum, but that’s not there. Obviously, we need to revise our courses as a university.”
Kim’s letter said he could welcome feedback, direct readers to the webpage and provide suggestions on the university’s “financial resilience efforts.”
However, Madhav said it would be difficult to put heavy on the line as there are few known details about the university’s plans. Instead, what he wants is specific information about the imminent employment cuts.
“If anyone is fired, they want to know with as many notices as possible,” he said. “Especially considering how difficult the job market is.”
Times staff writer Jaweed Kaleem contributed to this report.
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