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.
