The January 2026 Layoff Wave Hits US Higher Education Hard

As the new year unfolded, US colleges and universities faced a sobering reality with at least 100 reported layoffs and dozens of program eliminations in January alone. This marked a continuation of the challenges from 2025, when the sector lost over 9,000 positions amid federal policy shifts and enrollment pressures. Institutions from community colleges to private arts schools implemented cuts to address budget shortfalls, signaling deeper structural issues in higher education funding and demographics.

These moves come against a backdrop of broader economic uncertainty, including changes in federal research grants and international student visas under the Trump administration. While the total for January was lower than December's roughly 300 job losses, the pattern underscores a persistent need for fiscal recalibration across public and private campuses alike.

Community Colleges Bear the Brunt: Santa Monica College's 70 Layoffs

California's Santa Monica College exemplified the strain on community colleges, announcing 70 position eliminations to combat a projected $16.7 million budget deficit. Declining enrollment and shifts in state funding formulas—part of California's Student-Centered Funding Model (SCFM), which prioritizes equity and outcomes—exacerbated the shortfall. Superintendent Kathryn E. Jeffery emphasized the human cost, stating, “These are not just positions on a spreadsheet—they represent real people, colleagues who have dedicated themselves to our students and our mission.”

Community colleges nationwide are navigating similar dynamics. Enrollment at two-year institutions has fluctuated post-pandemic, with many losing full-time equivalent (FTE) students due to workforce entry or transfers. This case highlights how local funding dependencies amplify national trends, prompting leaders to streamline operations while preserving core student services.

Arts Education in Crisis: California College of the Arts Closure Looms

The California College of the Arts (CCA) laid off 28 employees across academic affairs, enrollment, and administration, accelerating its path toward closure at the end of the 2026–27 academic year. Financial woes forced the sale of its San Francisco campus to Vanderbilt University, which plans a West Coast expansion. This development reflects vulnerabilities in specialized private institutions reliant on tuition and endowments.

Arts and humanities programs have long faced scrutiny for low enrollment and ROI concerns, but CCA's fate illustrates how market forces and donor fatigue compound issues. Current students are being supported through teach-outs, yet the loss raises questions about preserving creative disciplines in a STEM-prioritized landscape.

Flagship Universities Trim: UNC Chapel Hill and Beyond

Even elite public flagships like the University of North Carolina at Chapel Hill signaled impending layoffs to shave $17 million from administrative costs. Chancellor Lee Roberts framed it as a “last resort,” amid rising operational expenses and stagnant state appropriations. Similar pressures hit New Jersey City University, where merger preparations with Kean University led to unspecified staff reductions to close a $25–30 million gap.

These actions follow December precedents, such as DePaul University's 114 staff cuts due to a 62% international enrollment drop. Research universities, dependent on federal grants from agencies like the National Science Foundation (NSF) and National Institutes of Health (NIH), face uncertainty as budgets tighten, potentially stalling innovation.

For professionals affected, resources like higher ed career advice on AcademicJobs.com offer resume tips and job search strategies tailored to academia.

Program Eliminations Reshape Curricula

Beyond jobs, dozens of programs met the axe in January. Pennsylvania Western University targeted six undergraduate degrees, four graduate programs, and 34 minors for elimination, aiming to align offerings with workforce demands. The University of Montana proposed axing master's degrees in literature and economics, plus pausing niche minors like Chinese and Irish studies, citing low enrollment.

Texas A&M University shuttered its Women’s and Gender Studies program immediately, complying with system policies on “race or gender ideology” while addressing underenrollment. This echoes Oklahoma's December elimination of 41 degrees, including languages and geography at its flagship.

• Low-enrollment programs disproportionately affected, often in humanities and social sciences.
• Institutions adding high-demand alternatives, e.g., College of Idaho's new biochemistry and data analytics tracks.
• Potential for teach-outs to protect current students' degree paths.

Such shifts challenge academic freedom but enable resource reallocation to growing fields like AI and healthcare.

Root Causes: Enrollment Declines and Policy Shifts

The enrollment cliff—predicted drop in high school graduates starting 2026—looms large, with fall 2025 showing uneven growth: overall up 1%, but privates down and internationals off by 5,000 students. Trump-era policies, including visa restrictions and ED funding cuts, slashed international tuition revenue, vital for many privates.

Moody’s Ratings forecasts 3.5% revenue growth versus 4.4% cost rises for 2026, pressuring margins. State funding volatility, like property tax reforms hitting community colleges, adds layers.

Experts like Fitch note “deteriorating” outlooks, urging diversification into online and short-term credentials.

Human Impact: Faculty, Staff, and Students Affected

Layoffs ripple through tenured faculty, adjuncts, and support staff, disrupting research and mentoring. At Nebraska-Lincoln's 51 cuts (mostly faculty), programs like statistics faced dissolution, eroding expertise. Students encounter larger classes, reduced advising, and course cancellations.

Stakeholder views vary: unions decry austerity, administrators stress sustainability. Vulnerable groups—adjuncts comprising 70% of faculty—bear disproportionate burdens.

Rate My Professor communities highlight retention concerns, as departing educators take institutional knowledge elsewhere.

Strategic Responses and Adaptation Tactics

Institutions counter with buyouts (e.g., Boston U's faculty offers), mergers (NJCU-Kean), and portfolio realignments. Western Wyoming CC reorganized 30 roles post-33 layoffs to preserve reserves.

• Enhance online/hybrid delivery for enrollment recovery.
• Pursue philanthropy and partnerships, like Vanderbilt-CCA.
• Invest in high-ROI programs amid demographic shifts.

Credit agencies advise balanced budgets; some eye asset sales.

Expert Insights and Projections for 2026

Analysts predict sustained cuts, with S&P warning of tuition hikes lagging inflation. Robert Atkins of Gray Decision Intelligence foresees “significant” state university program trims. Positive notes: adult re-enrollment and credential stacks could offset declines.

Federal battles over Pell Grants and TRIO programs persist, but bipartisan pushes preserve some aid. Outlook: cautious adaptation over crisis.

For deeper analysis, explore higher ed jobs trends on AcademicJobs.com.

Actionable Advice for Higher Ed Professionals

Affected academics should leverage networks, upskill in data analytics or edtech, and target stable sectors like community colleges or online providers. Tailor CVs with quantifiable impacts; use free templates at AcademicJobs.com.

• Monitor state budgets for funding rebounds.
• Consider adjunct or remote roles via remote higher ed jobs.
• Engage alumni networks for transitions.

Institutions: Prioritize transparency to rebuild trust.

Photo by Kyle Smith on Unsplash

Looking Ahead: Resilience in US Higher Education

While January's cuts signal turbulence, history shows adaptability—post-2008 recoveries via online growth. Balanced reforms could stabilize the sector, fostering innovation. Job seekers, visit higher ed jobs, university jobs, and career advice for opportunities. Post a vacancy at AcademicJobs.com to attract talent.