The Johns Hopkins University announced today that it would freeze all hiring and most salary increases, and would reduce top administrators’ pay by 5 percent, in response to the economic crisis.
The university’s endowment lost 20 percent of its value in the first six months of the fiscal year beginning last July, and revenue for the 2010 and 2011 fiscal years will be $100-million short of previous estimates, the university’s president, William R. Brody, wrote in a grim e-mail message sent today to faculty members, staff members, and students.
“Businesses and banks have failed,” Mr. Brody wrote. “GDP is down. Unemployment is up. Many of us have relatives or friends who have lost work. Given the performance of the stock market, almost all of us are concerned about our personal financial situations, at least in the near term.”
The hiring freeze will last through June 30, 2010, and only salary increases required by contract will be allowed in the fiscal year beginning this July. Overtime will be eliminated, and the use of temporary employees or independent contractors to fill open positions will not be allowed.
“Our priorities are to preserve the excellence of Johns Hopkins in teaching, research, and patient care, and to address, to the extent that resources allow, changing financial circumstances of returning students,” wrote Mr. Brody, who is just a few weeks away from retiring.
Savings from the cut in top administrators’ pay — which affects the president, vice presidents, and divisional deans and directors starting July 1 — will go toward “divisional priorities,” including student aid, Mr. Brody wrote.
The moves do not apply to Johns Hopkins’s Applied Physics Laboratory, which operates under a different business model, Mr. Brody wrote. —David Shieh