Western Michigan University announced pay cuts and layoffs Thursday after they lost $45 million already this fiscal year.
In a letter to his colleagues, WMU president Edward Montgomery said they plan to lay off about 240 people, adding it is unclear if or when these team members will go back to work.
Montgomery also announced a 5-10% pay cut to top ranking personnel along with a 2.25% pay cut for other staff members. He said these reductions will last at least through the upcoming fiscal year.
"These employees have served our students and institution well, allowing us to advance the common good. We understand the weight of these unavoidable decisions that none of us ever wanted to make," Montgomery said.
In the letter, Montgomery said they already implemented a number of counter measures to avoid taking this step but ultimately it was unavoidable, citing the financial strain caused by the coronavirus pandemic.
Even with these closures, Montgomery said they're predicting between $45 and $85 million is losses this upcoming fiscal year (July 1st, 2020 - June 30th, 2021).
"Though necessary, none of these measures is desirable or easy. Please know we have given these changes a great deal of analysis and serious consideration."
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