Drexel University lays off 60 employees in face of ‘structural imbalance’ in operating budget

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Drexel University announced Tuesday that 60 employees have been cut from its staff this month as part of its plan to reduce $150 million in costs following a drop in enrollment.

According to a Drexel spokesperson, the layoffs do not impact any of the university’s tenured employees. Those laid off make up roughly 1.4% of Drexel’s workforce. In a statement sent to WHYY News, Drexel said the “difficult decision” was not “made lightly,” but was needed “in order to ensure resilience amid financial headwinds facing the higher education sector.”

“Drexel remains grateful to these employees for their contributions to the University and will be providing them with personalized support, including career counseling, job placement assistance and other resources,” the statement said.

In addition to the 60 people being laid off, about 155 employees have opted into the university’s voluntary retirement incentive program, receiving contract payouts and other benefits.

Drexel’s “multi-year financial resiliency plan” to reduce $150 million in costs comes due to a drop of enrollment for first-year students. Drexel said it was “on track” to enroll 2,350 new, first-year undergraduate students this fall, but that was still about 500 students less than the original target.

“The key drivers of Drexel’s operating budget imbalance largely reflect the challenges impacting much of higher education right now: declining enrollments, as the numbers of college-age students in the region have declined; increased investments, both in financial aid to promote access and affordability and in student supports to ensure their success and well-being; and rising costs associated with running a university,” the statement said.

The university also noted challenges with the “flawed rollout of the new Free Application for Federal Student Aid,” which included more than 40 separate technical issues with the initial rollout, according to the U.S. Government Accountability Office.

“Drexel was also seriously impacted by the flawed rollout of the new Free Application for Federal Student Aid (FAFSA),” the statement said. “While its merger with Salus helped to mitigate the impact on Drexel’s overall enrollment for this academic year, the decline in first-year enrollment has added $22 million to the University’s current operating budget imbalance.”

According to data from the National Student Clearinghouse Research Center, freshman enrollment dropped 5% in fall 2024 compared to last year.