Duke University to begin employee buyouts as federal funding cuts loom
Duke University informed employees Wednesday that it would begin a voluntary buyout program to reduce costs in response to potential federal funding cuts.
School officials said this offer is intended to mitigate the number of layoffs the university may have to make this summer.
With more than 47,000 workers, Duke is the Triangle area’s top employer and among the largest statewide. Employees were notified of the upcoming voluntary separation offers during a university-wide webinar. In a subsequent statement, the university said school leaders will determine who is eligible for the program.
“We understand that these decisions are difficult, and we are fully aware of the stress that uncertainty can have within our community,” said Antwan Lofton, vice president for human resources.
According to The Assembly, Duke told staff it seeks to reduce expenses by around $350 million, or 10% of its spending, as the Trump administration threatens funding for the elite Durham research institution. Duke spokespeople declined to confirm these specific figures to The News & Observer.
During a separate webinar on April 15, Duke University President Vincent Price communicated that federal policy changes could mean up to $500 million in lost revenue for the school.
Since March, the university has controlled costs by freezing hiring, eliminating empty positions, saving on administrative tasks, and halting new spending on construction and renovations. But Duke says it must do more to prepare for lost federal dollars, the amount of which is not yet known.
In its first 100 days, the Trump administration has singled out elite universities for substantial funding cuts and freezes. This has been in addition to slashes to National Institutes of Health funding. Duke, the state’s top recipient of NIH funding, received $580 million from the federal agency last year to support medical research.
In February, NIH capped “indirect” grant payments, which cover facilities and administrative costs, at a flat 15% rate. This is far below what major universities like Duke (61.5%) and UNC-Chapel Hill (55%) had negotiated.
“This is seismic,” Dr. Colin Duckett, vice dean for basic and preclinical science at the Duke University School of Medicine, said at the time. “I cannot overstate that.”
A district judge has since blocked the universal indirect payment cuts, a decision the Trump administration appealed.
This story was originally published April 30, 2025 at 6:32 PM.
