Duke Moves Forward with Strategic Realignment and Cost Reduction Program

University leaders share updates with staff and faculty

In a proactive move to support its research, clinical care and teaching missions, Duke launched a university-wide strategic realignment and cost reduction program in March. During a university-wide webinar Wednesday, university leaders shared a progress update with Duke faculty and staff.  

“To assure we are best positioned to continue to support our missions, we believe it is critical to take appropriate actions sooner rather than later to lower costs and strategically realign our operations against lower federal funding levels going forward,” said Daniel Ennis, Duke’s executive vice president.

By mid-April, Duke had already taken steps to reduce spending by prioritizing cost reductions in administrative operations. In addition, Duke has suspended all capital spending on new buildings, renovations and other capital projects that are not fully funded or deemed essential. Duke is also carefully reviewing administrative programs that serve the entire university, including technology adoption, off-campus real estate, and on-campus space consolidation. 

A study is also under way to assess how certain changes to the university’s benefits may generate savings while protecting the program’s strong competitive position. Ennis made clear, however, that Duke will roll out its regular fiscal year-end performance review and salary merit increase program and that it does not have plans to change the university’s Children’s Tuition Grant. 

During Wednesday’s webinar, Ennis and Antwan Lofton, vice president for human resources, shared an update on the types of employment-related actions Duke is and will be taking in the coming weeks. 

While the university is assessing changes to programs and operations in a proactive and values-driven way, Ennis said, he added it is impossible to address the scope of threats to the university’s federal funding without making changes to staffing levels. 

The university is pursuing several employment actions now in hopes of reducing the scale of involuntary separations later this summer. The measures include a staff hiring freeze and elimination of vacant positions, and a voluntary separation incentive program. Deans, vice presidents and vice provosts are working with managers to determine which staff will be eligible for the voluntary separation program. 

“We understand that these decisions are difficult, and we are fully aware of the stress that uncertainty can have within our community,” Lofton said. “We are working closely with our leaders to make these decisions about staffing as quickly as possible as we continue to move Duke forward.” 

Duke faculty and staff can find more information on these measures at updates.duke.edu. Additional information and resources are available for Duke Health faculty and staff here. 

“This is an incredibly hard moment,” Ennis said after the webinar. “But each decision is being made with input and discussion about how to best address these challenges while ensuring we continue the standard of excellence that has defined this institution for the last 100 years and will define what we accomplish for the next 100 years.”