Pay Cuts Set for Anyone at The University of Arizona as a $250 Million Loss Is Expected
IBL News | New York
The University of Arizona announced on Sunday pay cuts and furloughs for nearly all of its employees in order to finance an expected $250 million loss, according to Tucson.com. The institution has already registered $66 million in losses.
This is the first research university to adopt significant cost-saving measures due to the COVID-19 pandemic.
The plan will go into effect on May 11 and will last until June 2021. The cuts will require any employee making $150,000 to take at least a 17% pay decrease, while those making less to take unpaid work-days resulting in at least a 5% salary reduction.
The salary decreases are expected to save the university up to $95 million. In addition, the university has imposed a hiring freeze, delayed merit increases, and withheld $22 million investment.
However, no one will be fired.
Losses are expected to come from decreases from tuition, which makes up 30% of their annual revenue. Domestic and international students make up about 60% of that, which could pose issues as international students might have trouble getting to Tucson, Arizona, as a result of world-wide travel restrictions.