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Hampshire College We are laying off 9% of our staff. The university's president confirmed Monday that the university will be making sweeping changes amid lower-than-expected enrollment growth next school year.
The move targets institutions often cited as recovery models among smaller colleges struggling financially.
Hampshire's restructuring includes the merger of colleges. We have consolidated our financial assistance, registration, events, and fundraising functions into a new department with the overall title “Institutional Support.”
that much Based in Massachusetts Nonprofit private institutions are also redistributing responsibilities from the Office of Student Affairs to various departments, such as the Office of Academic Affairs and the Office of Justice, Equity, and Anti-Racism.
Hampshire's Leaders expect the move will eliminate and save about 29 positions. $2.7 million per year chancellor Edward Wingenbach said in an interview with Higher Ed Dive on Monday:
“We continue to grow and our enrollment continues to grow.” Wingenbach said. “It’s really about making sure we continue to be successful as the parameters of that growth change.”
A Hampshire spokesman said senior university staff would see their salaries cut by 13 per cent as part of the budget cuts.
The restructuring also takes place immediately after the announcement. Suspension of retirement contributions For fiscal year 2025.
Growth slowdown
Many of the cuts announced on campus Monday morning are to administrative roles, including the executive director level, meaning more staff will report to fewer department heads. The university is asking department heads and vice presidents to “increase their direct involvement.” Wingenbach said.
Talks about a potential merger and restructuring began earlier this year when it became clear Hampshire's Enrollment is increasing each year, but will not reach the target.
The institution has been rebuilding its enrollment and finances since 2019. It's been a wild year for the universities that brought it on. Near the closing point And that fall, only a few freshmen were admitted.
Today, Hampshire expects to welcome about 900 students this fall, up from about 500 just two years ago.
Nevertheless, last spring it became clear to leadership that enrollment growth would fall short of expectations. April 2023, University The fall 2024 enrollment is expected to be 940 students.
Explaining why you missed the registration score, Wingenbach He mentioned the challenges facing higher education this year. Free Application for Federal Student Aid38% Hampshire's Students are eligible for a Pell Grant.
The U.S. Department of Education released the FAFSA in late December, about three months later than usual, and the process has been plagued by delays and technical issues that have made it difficult for some students and their families to complete the form.
Beyond slow registration US Federal Free Application for Federal Savings (FAFSA) There may have been a problem. Wingenbach Said Hampshire They pledged to keep the budget balanced through the 2026-27 school year. As enrollment growth slowed, leaders began looking at the cost side. Hampshire's We have budgeted to achieve our financial sustainability goals.
“I had to sit down and say, 'Okay, of all these possible ways we could rethink this,' Hampshire What is most likely to be successful in your human and administrative structure? Wingenbach said.
Through the integrated plan, the university sought to maintain “excellent progress” in student retention and academic programs while balancing cost containment and a sustainable budget. Wingenbach.
Leaders looked at where they could reduce complexity and give up services without compromising the university's core values. Wingenbach “We didn’t start out with, ‘How do we get to X number?’”
'We have to be realistic'
After a challenging year in 2019, Hampshire underwent a major curriculum overhaul, replacing traditional majors and departments with a curriculum focused on addressing pressing global issues like climate change and racism.
The university has raised more than $43 million from donors. but, Wingenbach said, Hampshire It must be “self-sustaining,” meaning it must be in a financial position where it does not need donors to support its operating activities.
While doing Hampshire's Enrollment is recovering to 2019 levels. The university continued to operate at a deficit. In fiscal year 2023, Total operating loss of $3.4 million. That figure is more than tenfold compared to the previous year, as the federal government's COVID-19 emergency fund was short nearly $3.7 million. It has garnered support.
Even if college enrollment growth is projected to accelerate in the next year or two, the slowdown will continue because class sizes are smaller than expected this year. But the increased growth means colleges can start investing in new areas again.
“We need to know that whether or not enrollment starts to increase again in the short term, it can be sustainable in 2026-27.” Wingenbach “We have to work with the data we have. We have to be realistic about our budget.”
But still, pointing to experimentation with university curricula and programs, Wingenbach It highlighted the university's continued ambitions.
“As a small university, if you don’t have ambition, you won’t be successful.” Wingenbach He said at the same time that universities Hampshire's Resources must be used carefully and thoughtfully, depending on the scale.
“What we’re doing now is incredibly difficult and will impact a lot of people,” he said. “But it also ensures that we can continue to be an ambitious and experimental institution that I think is a very important example of higher education.”