Stanford University Lays Off Over 360 Employees, Blames Trump-Era Funding Cuts

Stanford University has laid off 363 employees amid what it describes as a challenging fiscal climate driven largely by policies enacted by the Trump administration. The university is undertaking a$140 million budget reduction for the upcoming academic year, citing changes in federal higher education funding, Reuters reported.

In a statement issued Tuesday, a Stanford spokesperson confirmed the layoffs, which span various schools and departments. “Stanford is in the process of making budget reductions. Last week, many schools and units made staff workforce reductions. In total, 363 layoffs occurred,” the university said in an emailed response to media inquiries.

The cuts come as U.S. President Donald Trump’s administration intensifies pressure on academic institutions, threatening to withdraw federal funding over campus activism seen as critical of American ally Israel, and targeting programs focused on climate change, LGBTQ+ inclusion, and racial diversity.

The White House has justified its actions as part of a broader effort to combat antisemitism, claiming that pro-Palestinian campus protests have created hostile environments for Jewish and Israeli students. Rights groups and several university leaders, however, argue the administration is infringing on academic freedom and stifling legitimate political expression.

Last week, the Trump administration froze more than $330 million in federal funds earmarked for the University of California, Los Angeles (UCLA), alleging that the institution failed to curb antisemitic conduct following widespread student protests against Israel’s ongoing military campaign in Gaza. The Los Angeles Times reported Tuesday that UCLA officials are preparing to negotiate with federal authorities in hopes of reversing the funding freeze.

Stanford’s layoffs come against this backdrop of mounting tension between higher education institutions and the federal government. In June, the university warned of looming financial challenges, pointing to federal policy shifts as a key driver behind the $140 million cut to its general funds budget.

Meanwhile, several other prestigious universities have already reached settlements with the federal government. Columbia University has agreed to pay more than $220 million, while Brown University has committed to $50 million, with both institutions reportedly acquiescing to certain federal demands. Negotiations with Harvard University remain ongoing.

Advocacy groups and academics have raised alarms over the sweeping scope of the administration’s crackdown, which they say conflates criticism of Israeli government policy with antisemitism. Many protesters, including Jewish organizations, maintain that their demonstrations are aimed at Israel’s military actions and treatment of Palestinians, and should not be equated with hate speech or extremism.

The Trump administration has defended its approach, saying it is committed to ensuring that university campuses remain safe and inclusive for all students. Critics argue that the current measures risk curbing civil liberties and undermining the independence of academic institutions across the country.