The University of Utah is reviewing its administrative operations in a process that could eliminate between 285 and 855 staff positions, according to a report published October 11. The institution is seeking to address rising expenditures and strengthen its financial position ahead of potential funding and enrollment pressures.
The review covers approximately 5,700 non-faculty, non-clinical operational staff positions. While the university cited a potential reduction of 5% to 15% based on comparable organizations, officials stated the range is not a uniform target across all departments and no final total has been determined. The university has engaged McKinsey & Company and Huron Consulting Group to support the review, having paid the two firms a combined US$4.7 million for their analysis. Chief Financial Officer Gary McArthur told The Daily Utah Chronicle that while projected total revenue for the 2027 financial year is US$10.6 billion, up from US$10.2 billion the previous year, rising expenditure has resulted in only a modest improvement in operating income.
One area under consideration is a centralized shared services model for human resources and finance. For example, the university currently employs approximately 900 HR staff across academic colleges and teams but anticipates that around 300 could be sufficient under a redesigned structure. Subsequent phases of the review will examine information technology, communications, marketing, administrative support, real estate offices, and auxiliary services. The university noted that while reductions could occur through retirement and natural attrition, compulsory job losses are possible. University of Utah Health is expected to undertake a parallel process.
The initiative follows other cost-saving measures, including changes to retirement benefits for new employees and the planned closure of the university’s Sandy campus. The institution previously reduced 475 positions over the previous five years. Additionally, an updated analysis published in September by the Kem C. Gardner Policy Institute projected that Utah’s population aged 18 to 24 will continue growing through 2028 before declining for almost two decades.
The restructuring is being undertaken in phases, with the initial benchmarking and assessment process expected to be completed by March 2027. Implementation is expected to continue through the end of June 2027.
