University’s operating deficit exceeds $200 million, layoffs to come

Posted on July 14, 2025

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University’s operating deficit exceeds $200 million, layoffs to come

The layoffs, among other measures, will address an increased deficit and potential losses of federal funding, wrote interim President Beong-Soo Kim in a statement.

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By ZACHARY WHALEN

July 14, 2025

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Interim President Beong-Soo Kim wrote that he and members of the senior leadership team would meet with campus groups to receive feedback and questions regarding the upcoming changes. (Henry Kofman / Daily Trojan)

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USC will implement layoffs to “deal decisively with our financial challenges,” wrote interim President Beong-Soo Kim in a message to faculty and staff Monday afternoon. Kim wrote that the University ended the 2025 fiscal year with an operating budget deficit of over $200 million, an increase from the 2024 fiscal year’s operating budget deficit of $158 million. The statement named the “structural nature” of the deficit, along with poor financial performance from the health system, as contributors to the larger deficit.

A decrease in international student enrollment, as well as USC facing a potential $300 million loss in federally sponsored research funding, contributed to the decision to implement layoffs.

The statement read that USC plans to take additional steps to cut costs, “including selling unused properties, consolidating duplicative functions, and adjusting compensation for the most highly compensated members of our community.”

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These steps come in addition to measures announced in March, including a staff hiring freeze and continued budget reductions. On June 4, the University also announced its intent to sell the USC Peace Garden by June 30.

A website linked in the statement provides a suggestion box for students, staff, faculty and alumni to suggest ways for USC to combat its financial challenges, which will also include future updates from the University on budget developments.

Kim wrote that he and members of the senior leadership team would meet personally with the Academic Senate, the Staff Assembly and other community groups to receive feedback and questions regarding the upcoming changes.

“I know this is not the news we were hoping for, but by speaking forthrightly to you, I hope you will understand both the reality of our situation and the deep respect I have for every member of our Trojan Family,” Kim wrote

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