Wash U to furlough about 1,300 employees

Описание: ST. LOUIS — Washington University will furlough 1,300 employees for 90 days, sources have confirmed to 5 On Your Side. Many of the affected employees are on the medical campus.

The employees on the medical campus are being notified Monday and the furloughs will begin next week.

According to a letter from the chancellor's office to the university's faculty and staff, the cuts are due, in part, to the elimination and reduction of elective procedures, fewer patients at clinics and fewer patients at the academic hospitals.

"The financial impact of higher expenses unique to the pandemic and lower revenues from lost volume are creating operating losses with revenues off by $60 million in just the first month," the letter said, in part. "That loss is projected to continue for some time, until we can see a return to normal operations."

The university has taken steps to cut some costs, including a hiring freeze at its Danforth Campus, making significant reductions in spending in the fourth quarter, delaying non-essential building projects and pay cuts.

"It is our strong desire to preserve as many jobs as we can," the letter said. "You, our employees, are what make the university great. "

The entire letter says,

"April 20, 2020

"Dear Washington University Faculty and Staff:

"We would like to begin by saying we hope this finds you and your families as well as any of us can be during this incredibly challenging time. We know the past several weeks have been stressful and uncertain on a number of levels. Please know that we are concerned about your well-being, and that we remain exceptionally grateful to all of you for the sacrifices you are making for the greater good.

"The changes to all of our lives in the past month due to the COVID-19 pandemic have been dramatic and unsettling. Your response to these unexpected challenges has been nothing short of remarkable. Our university community has stepped up in big ways to address this evolving situation, and it hasn’t been easy. You’ve continued to show up on the front lines – as health care providers, first responders, or in other essential roles. You’ve transformed university properties into housing for medical workers. You’ve transitioned to an entirely different way of teaching in a very short time. You’ve found ways to pivot or pause your research and scholarship under enormously challenging conditions. You’ve solved problems through innovative solutions. You’ve reached out to support the St. Louis community in new and critical ways. Because of you, the university has continued to function under extremely difficult circumstances. We are thankful for all of you who have given so generously of yourselves during this time.

"Unfortunately, we must now face painful realities as we continue to navigate this evolving situation. Even for an institution like ours, with a strong financial foundation, this crisis is taking a huge toll, primarily due to sweeping changes on the Medical Campus, which has completely shifted its operations to respond to COVID-19 patient care. Elective procedures and any activities that are not absolutely necessary or related to COVID-19 have been halted or scaled back. The academic hospitals have hundreds of empty beds. Our clinics are seeing 60% fewer patients. Only critical and emergent care is being provided. The financial impact of higher expenses unique to the pandemic and lower revenues from lost volume are creating operating losses with revenues off by $60 million in just the first month. That loss is projected to continue for some time, until we can see a return to normal operations. In total, our medical school is projecting a revenue loss of $150 million through the end of the fiscal year. In addition, the Danforth Campus will need to absorb an estimated one-time fourth quarter cost of approximately $25 million, which includes refunds to our students for unused housing and dining plans and other fees, as well as the cost of packing and shipping essential items to students. We also have incurred additional costs for increased technology needs across the university and to provide housing for medical personnel who cannot go home during this time.

"We do not know what recovery will look like, or when it might happen. It is unlikely that we will see great improvement during the summer, particularly since we have already made the difficult decision to suspend all in-person programming and events until at least August 1."