The Stanford Graduate School of Business laid off 49 employees, or 12 percent of its staff, earlier this month because of a $15 million revenue shortfall, which is 10 percent of its annual budget.
In addition, eight staff members were put on a reduced work schedule and 12 contractor or "fixed-term" positions were eliminated. The school has reduced expenses for travel, food, library services, marketing activities and printing.
Student programs, including financial aid, were not affected.
"This was the most painful decision I have had to make in my nearly 10 years as dean," Graduate School of Business Dean Robert L. Joss said. "We regret to lay off staff members who have been dedicated to the school and its educational mission, but by cutting expenses now we can ensure our long-term financial health. Every effort will be made to support employees as they transition out of our workforce."
Laid off staff members received an enhanced university severance package, which was previously announced by the university. Stanford expects to cut its overall budget by 10 percent in 2009 and another 5 percent in 2010, reducing its $800 million annual general fund budget by $100 million.