University of Maryland lays off 84 employees amid budget pressures

Dive Brief:

The University of Maryland, College Park has laid off 84 employees as it navigates budget shortfalls stemming from federal and state funding cuts and spikes in energy costs, UMD President Darryll Pines said in a public message Wednesday. 
The public institution in April estimated it may have to eliminate up to 150 jobs through layoffs, vacancy closures and retirements. The cuts come after UMD has in recent years slashed discretionary spending, slowed hiring and reduced headcount through attrition. 
UMD does not anticipate additional layoffs for the fiscal 2027 cycle, but “we must remain prepared to respond to changing financial circumstances as they arise,” Pines said. 

Dive Insight:

UMD’s fiscal 2027 budget is taking hits from multiple directions. Pines pointed to an estimated $15 million reduction in federal research funding for UMD and $18 million in increased energy costs for the fiscal year. At the same time, the university’s state support is set to decline by over 10%, or $104 million, in the 2025-2027 fiscal period. 

The layoffs announced Wednesday were all state-funded jobs. 

The Trump administration’s disruptions and cuts to the federal research system pose a major financial risk for Maryland’s public universities. In fiscal 2025, federal grants and contracts contributed $1 billion to the University of Maryland System’s budget, nearly one-fourth of its total operating revenue. 

In addition to those travails, returns on UMD’s roughly $2.5 billion endowment have come under pressure in recent years, with return rates falling short of benchmarks by at least 2 percentage points in the past two fiscal years. 

“Over the past three years the university has experienced compounding financial pressure on both revenues and expenses,” Pines said. Although UMD has cut back spending to adapt, “workforce reductions became necessary to ensure the university’s long-term financial sustainability,” the university’s leader added. 

UMD’s enrollment has remained stable amid the funding challenges. Between 2019 and 2024, fall headcount increased 2.4% to 41,725 students.

Rollbacks in state funding — as Maryland grapples with its own budget woes — have led to cuts elsewhere in the system. Bowie State University leaders announced plans last month to slash 79 jobs, including through layoffs, as the historically Black institution tries to close an $18 million budget deficit.

Pines made clear that UMD isn’t fully out of the woods after the latest round of budget actions. 

“State budget forecasts continue to indicate significant fiscal pressures in the years ahead, and federal funding conditions remain unpredictable,” he said. “We will continue to closely monitor these developments and evaluate their impact on the university.”