“The plan will go into effect on May 11 and will last until June 2021.”
The financial losses for colleges and universities are really adding up.
IBL News reports:
Pay Cuts Set for Anyone at The University of Arizona as a $250 Million Loss Is Expected
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.
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