Northwestern University to Furlough 250, Tap Endowment for More
Northwestern University forecast a $90 million budget shortfall due to the coronavirus pandemic and said it will tap more money from its endowment and furlough about 250 staff members.
The school forecast the deficit for the current fiscal year and said the endowment move is aimed at avoiding further budget pressures, according to a letter from university President Morton Schapiro on Monday. The endowment was valued at $10.8 billion as of August.
Universities across the U.S. are facing financial pressure as the virus outbreak has forced them to clear out dorms, cancel on-campus classes and, in some cases, provide students with rebates for room and board.
In addition to the furloughs, which are likely to last through August, the Evanston, Illinois-based school will suspend its 5% automatic contribution and 5% matched contribution to retirement plans through December.
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