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Penn State University Layoffs

There are talks of more layoffs at Penn State as university administrators continue to work on reducing a budget deficit, but where the possible job cuts may be, and in which departments, are still being reviewed.

Penn State President Neeli Bendapudi admits it was an unpleasant surprise to find out, after she was named president, that there was a sizable deficit, close to $140 million, in the university’s education and general funds budget.

In recent weeks, in updates from the president, more mentions have been made of reducing employee numbers, and limited layoffs, as possibilities for cutting costs.

Bendapudi stresses that Penn State is not in financial crisis, but admits that, in recent years, more than $100 million, per year, in reserve funding was being used to cover expenses.

As for layoff numbers among university employees, here’s what she told us a few weeks ago.

“In some places we may have three people where we just need one person. In others we may need more people. It’s difficult to answer because were not just one thing.”

In an update earlier this week, Bendapudi says “individual units are being asked to thoroughly review their budgets and take steps to meet urgent fiscal obligations.”

She says some units are facing what’s termed historical structural budget deficits that cannot continue.

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