John Hopkins University is expecting layoffs and furloughs due to Covid-19 economic impact
- John Hopkins University announced that it expects furloughs and layoffs will be part of its mitigation strategy, due to the economic impact of the pandemic.
- They will still continue to track coronavirus cases globally. The university expects to lose over $100 million (R1.9 billion) by June.
- For more stories go to www.BusinessInsider.co.za.
John Hopkins University, which has been tracking the spread of the coronavirus, expects layoffs and furloughs, in addition to cutting salaries, to be part of its mitigation strategy, due to the financial impact of the pandemic.
Ronald Daniels, the university's president wrote in a letter that the university expects to lose over $100 million (R1.9 billion) by June and $375 million (R7 billion) in losses by June 2021.
"Furloughs and layoffs are regrettably expected to be necessary within some units of the university as an unavoidable consequence of the losses we are experiencing," Daniels wrote. "Decisions regarding furloughs and layoffs will be made at the divisional and departmental level, including within university administration. Every effort will be made to provide transition assistance for affected employees during this extraordinarily difficult time."
According to the Associated Press, this won't impact the private university's research and tracking of the new coronavirus that causes Covid-19.
"There will be no effect on our pandemic efforts," Jill Rosen, a university spokeswoman told the AP.
According to local outlet WBAL-TV, the university is the largest private employer in Maryland and has over 47,000 employees.
"More than 1,200 employees have been rendered idle because they are unable to perform their duties. Many more are working off-site but at significantly reduced levels of productivity," Daniels wrote.
Since the campus has been closed, the university has seen tuition losses.
"Ever since we decided to end our on-campus instruction for undergraduates, graduate, and professional students; to suspend the lion's share of our lab-based research program, and to halt elective medical procedures, the university has suffered a dramatic and unprecedented contraction," Daniels wrote.
The local outlet reported the university system cut to pay for university leaders, froze pay for faculty and staff, and suspended retirement contributions.
Johns Hopkins University also implemented a hiring freeze for staff positions for the next fiscal year. The AP also reported that there will be "restrictions on hiring for academic positions."
Additionally, there will be no annual merit raises starting in July, and Daniels and Provost Sunil Kumar will see a 20% salary reduction, among other money-saving efforts that will impact employees and projects.
Additionally, the university anticipates losing revenue from its health system as well.
"This loss emanates from the cancellation of a broad array of elective services that are performed by our faculty physicians as the Johns Hopkins Health System shifted entirely toward the treatment of seriously ill Covid-19 patients and sought to reduce the risks to our workforce and preserve personal protective equipment," Daniels wrote.
According to WBAL-TV, there was a "$100 million (R1.9 billion) drop in revenue from doctors' bills."
The AP reported that Johns Hopkins University isn't the only university experiencing financial losses after campuses closed due to the pandemic.
Some universities could see losses of more than $100 million (R1.9 billion), and some universities have already started furloughing employees to prevent layoffs later on. Some small schools have permanently closed, the AP added.
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