Campus to eliminate 500 jobs over next 2 years as part of deficit reduction

By Katy Abbott

UC Berkeley will eliminate 500 staffing positions over the next two years as part of its ongoing efforts to reduce an annual deficit of $150 million, according to a campus memo sent to employees Monday.

The reduction in staffing, which is expected to save $50 million annually, would represent a decrease of 6 percent of the workforce. Chancellor Nicholas Dirks and Executive Vice Chancellor and Provost Claude Steele said in the memo, which details the campus’s recent short-term efforts to save money, that the campus anticipates its deficit will be reduced by $85 million — not including the $50 million in salary savings — by June 2017.

Faculty positions will not be affected by changes in staffing, according to campus spokesperson Dan Mogulof, although specifics on what departments will be affected have yet to be released. While some layoffs are already underway, administrators seek to avoid layoffs by meeting the workforce reduction target through attrition and retirement of workers as much as possible, Mogulof said.

Recent steps by the campus include debt restructuring — such as obtaining lower interest rates with help from the UC Office of the President — that is expected to save more than $15 million in 2016-17 and increasing philanthropic revenue. Additionally, campus divisions are expected to implement cost-savings measures totaling $20 million in structural deficit reductions across all units, though Mogulof said the number was a conservative estimate of how much the cost-saving efforts might ultimately save. According to the memo, the campus hopes to achieve a balanced budget by 2019-20.

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[Source]: Daily Californian