University of Louisville To Furlough Employees, Cut Pay
The University of Louisville will furlough employees and implement hiring freezes and pay cuts, citing the impact of the coronavirus pandemic.
The university’s president, Neeli Bendapudi, announced the move in a campus-wide email to staff and students on Thursday, news outlets reported. According to the Courier Journal, the email did not say how many employees will be hit with furloughs, or for how long they might last.
Bendapudi said lower tuition rates for summer classes, the cancellation of the March Madness basketball tournament and a government-ordered halt on optional medical procedures all contributed to a financial drain on the university. Unless immediate actions are taken, she added, the school projects a nearly $40 million negative impact by the end of the fiscal year.
The pay reductions will affect employees depending on their salary level, with 10% cuts for those earning $300,000 or more. According to the email, the cuts will remain in effect at least until the end of June.
Bendapudi said she and other university leaders have also voluntarily agreed to a pay reduction. Aside from a hiring freeze, Bendapudi added that the school is also looking at making temporary changes to retirement benefits.
University spokesman John Karman said furloughs and pay cuts will not affect UofL Health, a separate entity that runs UofL Hospital, Jewish Hospital and other local health care facilities since it is run by a separate entity.