USC has laid off over 630 employees, more cuts to come

CALIFORNIA – The University of Southern California (USC) notified the Employment Development Department that it was laying off an additional 295 employees effective October 3, 2025.

This round of layoffs follows 342 employee cuts that took place during the summer. The total layoffs so far is 637.

Over half of those laid off worked for the USC Keck School of Medicine. Thirty-three professors are expected to remain in their positions until later in the semester.

On the University Park campus, USC laid off an additional 135 employees. A large portion of the cuts were made to research administration staff.

According to USC Annenberg Media, more employee cuts are expected in the future.

“Volatile external environment”

In a July statement, USC interim president Beong-Soo Kim said some difficult actions need to be taken to address USC’s structural deficit in “our volatile external environment.”

“Like our peer institutions, we are experiencing significant shifts in federal support for our research, hospitals, and student financial aid, along with potential decreases in international student enrollment,” he said.

He noted that while the impact of these changes is difficult to predict, the potential annual revenue loss in federally sponsored research funding alone could be $300 million or more.

The school ended FY25 with an operating deficit in excess of $200 million, higher than the $158 million deficit in FY24.

Approach has been working

Kim said the university had already taken steps to address the financial challenges, including a zero-merit increase for FY26, ending certain third-party services, and additional discretionary spending and travel controls.

“And we are committed to doing much more, including selling unused properties, consolidating duplicative functions, and adjusting compensation for the most highly compensated members of our community,” said Kim.

In an August update, Kim said the university’s approach “has been working.”

“While these actions are necessary to ensure our university’s future, the resulting layoffs are difficult and disheartening in so many ways,” he said.