Stanford University will eliminate 363 staff positions this fall in a sweeping cost-cutting measure driven by federal policy shifts, mounting operational expenses, and escalating tax burdens. The layoffs, which represent nearly 2% of the university’s 13,000-person administrative and technical workforce, are set to take effect between September 30 and November 1, according to a state-mandated WARN Act notice filed last week.
The affected roles span more than 200 job classifications across research, administration, IT, student services, and campus operations. University officials say the decision stems largely from new federal legislation signed into law by President Donald Trump last month. The so-called “Big Beautiful Bill” raised the excise tax on Stanford’s $37.6 billion endowment from 1.4% to 8%, a change expected to cost the institution roughly $750 million annually.
“Stanford has a very large endowment,” Julian Vogel, assistant professor of finance at San Jose State University, told ABC 7 News. “And therefore, even small changes in the tax rate on that endowment would have a big impact.”
In a July 31 letter to faculty and staff, Stanford President Jonathan Levin and Provost Jenny Martinez announced a $140 million reduction to the university’s general funds budget for the 2025-26 academic year, citing “a challenging fiscal environment shaped in large part by federal policy changes affecting higher education.”
“These are difficult actions that affect valued colleagues and friends who have made important contributions to Stanford,” the letter stated.
The university has also been hit by deep cuts to federal research funding, with hundreds of grants from agencies like the National Institutes of Health and the National Science Foundation delayed or canceled due to ongoing funding freezes.
Critics of the federal legislation say the fallout was both predictable and avoidable.
“Stanford’s announcement that it is laying off hundreds of hardworking employees is a gut punch to our local economy and to families already struggling to make ends meet,” said San Mateo County Board of Supervisors President David J. Canepa in a public statement. “Make no mistake, these cuts are the direct result of the so-called ‘Big Beautiful Bill,’ a devastating piece of federal legislation that prioritizes politics over people.”
University leaders have warned that additional layoffs could follow if financial conditions deteriorate further. In the meantime, Stanford says it remains committed to preserving core academic priorities, including undergraduate financial aid and doctoral student funding.The layoffs follow a similar pattern to that of Northwestern University in late July.
