Stanford University lays off over 360 employees, citing federal cuts under Trump

Stanford University has announced the layoff of 363 employees as part of sweeping budget cuts it says are a direct result of federal policy changes under the Trump administration. The prestigious university cited "a challenging fiscal environment" driven by recent decisions from the White House targeting funding to institutions over campus protests and social inclusion programs.

The announcement comes amid growing tensions between US universities and the federal government, which has threatened to withhold funds from schools that it accuses of fostering antisemitism, promoting transgender rights, supporting diversity initiatives, and allowing pro-Palestinian demonstrations.

"Stanford is in the process of making budget reductions," a university spokesperson said in an emailed statement. "Last week, many schools and units made staff workforce reductions. In total, 363 layoffs occurred."

Stanford had earlier warned of looming financial challenges. In June, it slashed its general funds budget by $140 million for the upcoming fiscal year. According to the university, this decision was prompted by "a challenging fiscal environment shaped in large part by federal policy changes affecting higher education."

The layoffs at Stanford come just days after the Trump administration froze over $330 million in funding for the University of California, Los Angeles (UCLA), citing the university’s alleged failure to protect Jewish and Israeli students during recent campus protests over the war in Gaza.

FEDERAL SCRUTINY EXTENDS NATIONWIDE

According to the Los Angeles Times, UCLA officials are ready to engage in negotiations with the federal government in an attempt to unfreeze the withheld funds. There is also scrutiny of other prestigious universities. Brown University recently announced that it will pay $50 million under similar circumstances, while Columbia University recently agreed to a $220 million settlement to keep federal aid.

Harvard University remains in ongoing discussions with the administration. While some schools have agreed to settlements, they have pushed back against the federal findings.

"Columbia University has not admitted wrongdoing and does not agree with the government’s conclusion that it violated Title VI of the Civil Rights Act," the university said in a statement dated July 23.

The Trump administration’s efforts have sparked backlash from civil rights groups, educators, and advocacy organisations, many of whom argue that the government is conflating criticism of Israel with antisemitism and stifling academic freedom.

Protesters, including some Jewish groups, say the government wrongly equates their criticism of Israel's military assault in Gaza and its occupation of Palestinian territories with antisemitism, and advocacy for Palestinian rights with support for extremism.

These groups warn that such actions may have a chilling effect on free speech, especially when it comes to political issues and human rights concerns.

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With inputs from Reuters