As The New School announced the layoff of 87 employees, including 19 full-time faculty, its President Joel Towers is slated to earn roughly $1 million this year, according to Jacobin. The university enacts widespread workforce reductions to address financial instability, yet its top executive's salary remains exceptionally high amidst this austerity. The institution therefore risks undermining its academic mission and alienating its community by prioritizing financial cuts without transparently addressing executive compensation.
The Full Scope of the Reductions
- The New School plans to lay off 15% of the university's full-time faculty and staff, according to Hyperallergic.
- Approximately 40 percent of New School full-time faculty and all nonunionized staff with more than four years of experience received voluntary separation or early retirement offers, according to Jacobin.
These deep percentages of faculty and staff targeted for reduction reveal a comprehensive, aggressive restructuring strategy. The figures confirm a more extensive impact than initial reports, with both mandatory layoffs and voluntary buyouts contributing to a significant workforce reduction.
Mounting Financial Pressures
S&P Global Ratings downgraded the institution’s bond rating to BBB from BBB+, according to HigherEdDive. The S&P Global Ratings downgrade to BBB from BBB+ confirms serious financial instability, compelling the university to take drastic cost-cutting measures.
The S&P Global Ratings downgrade to BBB from BBB+, coupled with plans to reduce 7-15% of the workforce, confirms The New School's financial woes are not merely operational adjustments but a systemic crisis, poised to fundamentally alter its academic and cultural identity.
Leadership Compensation Amidst Austerity
President Joel Towers is slated to earn roughly $1 million this year, according to Jacobin. President Joel Towers' roughly $1 million compensation level starkly contrasts the widespread workforce reductions across the institution.
The New School's decision to maintain President Joel Towers' roughly $1 million salary while simultaneously laying off 19 full-time faculty and 68 staff members, according to WWD, reveals a leadership model that insulates top executives from the financial pain borne by the rest of the institution.
Ongoing Reductions and Future Outlook
The New School is reducing its workforce by 7% by spring's end through voluntary buyouts, according to HigherEdDive. The New School's ongoing reduction of its workforce by 7% by spring's end through voluntary buyouts underscores a sustained effort to streamline operations beyond immediate layoffs, foreshadowing a prolonged period of change.
By offering voluntary separation to approximately 40% of its experienced full-time faculty and nonunionized staff, The New School risks a significant brain drain. This could compromise the quality of education and institutional memory for years to come.
The New School's current trajectory, if unchecked by a reevaluation of executive compensation, appears likely to further erode institutional trust and academic standing in the coming years.
