Michigan State University has cut 99 positions as part of a comprehensive cost-reduction strategy aimed at addressing mounting financial pressures, President Kevin Guskiewicz announced in a recent letter to campus stakeholders.
The elimination of positions—spanning executive roles, support staff, faculty, and academic staff—represents the first phase of an $85 million budget reduction plan the institution unveiled in May. The cuts do not include non-renewed fixed-term appointments.
The predominantly white institution in East Lansing is targeting a 6% spending reduction this fiscal year, totaling $50 million, with plans to cut an additional $35 million—or 3%—in the following fiscal year.
Departments were directed to minimize personnel reductions during the initial year of cuts. Nearly two-thirds of this year's $50 million reduction came from non-personnel expenses, including supplies and services, though layoffs proved unavoidable.
Beyond internal budget constraints, federal funding cuts eliminated an additional 83 positions at the university. In late July, 94 MSU Extension staff members lost their positions following the discontinuation of the Supplemental Nutrition Assistance Program-Education (SNAP-Ed), which provided nutrition and physical activity programming to low-income families.
Combined, the reductions have impacted 1.3% of MSU's workforce since March 1.
Guskiewicz attributed the budget crisis to multiple factors: double-digit increases in employee healthcare costs, federal funding reductions, and accumulated general fund deficits from previous years.
The financial challenges persist despite MSU reporting its second-largest fall enrollment of 51,838 students and receiving a modest 2.1% increase in state appropriations, totaling approximately $333.8 million.
"We have taken the first difficult and necessary steps to assure the university's financial sustainability," Guskiewicz wrote, thanking faculty and staff for their commitment to the institution's mission.
The university will launch its next budgeting cycle shortly, with request letters scheduled for early November and submissions due Jan. 23. Guskiewicz pledged to share additional information as the fiscal year concludes.
MSU is providing outplacement services to eligible individuals affected by the cuts. The president acknowledged that some reductions continue to unfold through union and Human Resources processes.
"I appreciate the compassion our teams are showing one another during this period, as well as your patience in understanding that we are trying to share information transparently and in a timely manner," he stated.
The university operates on a nearly $3.7 billion budget, with $1.7 billion allocated to the general fund.
