Princeton Braces for Budget Cuts, Possible Layoffs

Permanent cuts of 5% to 10% will be implemented over the next three years, according to a memo sent to faculty and staff 

Nassau Hall seen from the rear in springtime

Government grants and contracts accounted for $456 million of Princeton's $2.99 billion budget in the fiscal year 2023-24. 

Denise Applewhite / Princeton University

Brett Tomlinson
By Brett Tomlinson

Published May 12, 2025

1 min read

Princeton University has frozen most staff hiring and called on all departments and units to plan for 5% to 10% budget cuts as it prepares for the possibility of “very large, permanent cuts to federal research funding as well as substantial increases to the endowment tax,” according to a memo sent to faculty and staff on May 12 by Provost Jennifer Rexford ’91 and Executive Vice President Katie Callow-Wright. 

The message called the budget cuts “permanent” and said they would be phased in over three years, beginning this summer. The University acknowledged that reaching the budget targets likely will require eliminating some staff positions but added that it will aim to “minimize layoffs” and use “unfilled vacancies as a bridge to natural attrition.” Princeton has paused or canceled some capital projects and is seeking to trim costs for other capital improvements, according to the memo. 

Rexford and Callow-Wright first raised the need for “spending restraint” in a March 19 message to faculty and staff, sent on the same day that President Christopher Eisgruber ’83 denounced the Trump administration’s actions against Columbia in an essay for The Atlantic. Less than two weeks later, Eisgruber announced that Princeton received notice from federal government agencies suspending “several dozen” research grants. Princeton’s 2023-24 Report of the Treasurer said government grants and contracts accounted for $456 million of the $2.99 billion budget in the fiscal year (about 15%).  

The memo stressed Princeton’s efforts to sustain its mission of teaching, research, and service. In early April, amid federal funding uncertainty, the University trustees approved “preliminary budget parameters,” according to a news release, and projected increases in undergraduate financial aid (up 8%, to $306 million) and graduate stipends (up 7%, to $365 million) in 2025-26.  

Several peer institutions have adopted cost-cutting plans or hiring freezes, including Harvard, Brown, Cornell, and Penn. Northwestern announced it will reduce nonpersonnel expenses by 10%, and Johns Hopkins cut more than 2,000 jobs, mostly in international projects previously supported by USAID.

6 Responses

John D. Gartner ’79

2 Months Ago

Proud of Princeton

I have never been so proud of Princeton. This is what “in the nation’s service” means. Do not bow to an evil dictator destroying America.

John Thornton ’60

2 Months Ago

Proud of Princeton

I agree!

Gerd H. Keuffel ’59

2 Months Ago

Dismantle Diversity Efforts, Find Favor With Trump

Note to the administration: I suggest that the dismantlement of all infrastructure and dismissal of dedicated personnel created to support the DEI mandates of previous administrations in Washington is low hanging fruit to achieve cost reduction. It would also find favor with the current White House occupant.

Bruce A. Krause ’58

2 Months Ago

Support the President of the United States

I think it’s a disgrace that PAW features alumni and a University president digging in against President Trump’s administration. The Princeton I went to would support the president of the United States in these troubled times.

Jack Henneman ’83

2 Months Ago

Need for Other Approaches, Including Layoffs

Minimizing layoffs and freezing hiring is, respectfully, a poor way to manage a financially-driven restructuring. In a situation such as this, any organization (for profit or not) should consider the necessity of each position de novo and eliminate those that are not important to the continuing mission. Prioritizing current employees over unfilled positions risks the opposite — paying for unnecessary work and failing to pay for necessary work. That may be easier for the executives charged with making the decision, but it is bad for the long-term health of the institution.

Hideo Shinagawa *69

2 Months Ago

Support Princeton Research, International Collaborations

I am a graduate alumnus and have been worrying about Trump administration’s policies on research and higher education in U.S. I fully support the current Princeton administration’s policies on research, education, and international collaborations.

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