Stanford University announced on Tuesday that it was laying off hundreds of employees, citing "changes in federal policy" during the Trump administration. A spokesman for Stanford University said the school laid off 363 employees last week. The move reportedly affects the work of various Stanford departments, including administration, research, alumni relations and campus operations.
"The school is providing support resources and layoff benefits to eligible employees," school officials said in a statement on July 31. "Nonetheless, these difficult moves will impact valued colleagues and friends who have made important contributions to Stanford."
Elizabeth Zacharias, Stanford's vice president for human resources, said in a letter that the layoffs were due to "ongoing economic uncertainty" and "anticipated changes in federal policy — such as reductions in federal research funding and increases in excise taxes on investment income."
The "Big and Beautiful Act" signed by U.S. President Trump last month increased Stanford University's donation tax from 1.4% to 21%. Stanford University's $37.6 billion endowment is one of the largest in the United States.
Stanford has also lost significant amounts of federal research funding as agencies such as the National Institutes of Health and the National Science Foundation are affected by ongoing funding freezes.
Stanford has also been forced to cut $140 million from its general budget in the upcoming year, according to a June statement from the school's president and provost. School officials cited "significant budgetary consequences of changes in federal policy."
"These changes include reductions in federal research support and increases in donation taxes," the statement reads.