Stanford Forced to Lay Off 363 Employees Due to Trump Policies
By Reuters | 05 Aug, 2025

Trump's federal funding policies putting the squeeze on elite universities was blamed for the need for a $140 million cut to the university's operating budget.

Stanford University said on Tuesday it has laid off over 360 employees, citing budget constraints that it attributed to the federal funding policies of U.S. President Donald Trump. 

The Trump administration has threatened to cut federal funds for universities over pro-Palestinian protests against U.S. ally Israel's war in Gaza, climate initiatives, transgender policies and diversity, equity and inclusion programs.

"Stanford is in the process of making budget reductions," a university spokesperson said in emailed statement in response to media reports on the layoffs. "Last week, many schools and units made staff workforce reductions. In total, 363 layoffs occurred."

The Californian university said in June it had made a $140 million reduction in the general funds budget for the upcoming year due to "a challenging fiscal environment shaped in large part by federal policy changes affecting higher education."

Last week, the Trump administration froze more than $330 million in funding for the University of California, Los Angeles, after alleging the university failed to prevent a hostile environment for Jewish and Israeli students since campus protests erupted after the start of Israel's war in Gaza.

The Los Angeles Times reported on Tuesday that UCLA leaders were preparing to negotiate with the Trump administration over the freeze.

The government has recently settled its probes with Columbia University, which agreed to pay over $220 million, and Brown University, which said it will pay $50 million. Both institutions accepted certain demands made by the government. Talks to settle with Harvard University remain ongoing.

Rights advocates have raised concerns about academic freedom and free speech over the government's actions.

The Trump administration alleges universities allowed antisemitism during pro-Palestinian campus protests.

Protesters, including some Jewish groups, say the government wrongly equates their criticism of Israel's military assault in Gaza and its occupation of Palestinian territories with antisemitism, and advocacy for Palestinian rights with support for extremism.

(Reporting by Kanishka Singh in Washington, editing by Ross Colvin and Lincoln Feast.)