Rider U. Considers Layoffs, Salary Cuts As It Outlines Financial Restructuring Plan

LAWRENCEVILLE, NJ — Rider University President John R. Loyack has outlined a series of potential cost-cutting measures and strategic initiatives following extensive community feedback about the institution's financial challenges.

In a letter to the campus community, Loyack and Provost Dr. Bidle reported meeting with nearly 100 faculty, staff, coaches and student leaders over two weeks, in addition to receiving written suggestions via email.

" At this critical moment in our history, our immediate priority must be preserving resources and implementing cost-cutting measures to stabilize Rider’s finances and future," Loyack wrote.

The community feedback revealed support for several urgent financial measures, including laying off additional personnel, reducing salaries, eliminating inefficient programs and activities, improving workload efficiency, adjusting employee benefits, and eliminating employee travel, leaves and other reimbursements.

"I believe that these ideas show an appreciation for the seriousness of the situation and a willingness by those who participated to put the 'greater good' ahead of individual interests," Loyack said.

The feedback session comes after Loyack issued a stark warning two weeks ago about the institution's financial condition, saying that the university faces a severe cash deficit that could jeopardize its ability to meet “core financial obligations later this fiscal year.”

Beyond immediate cuts, the community offered numerous suggestions for Rider's rebuilding phase. Key proposals include restructuring the academic model by moving from three-credit to four-credit courses, creating clearer degree pathways, and expanding experiential learning opportunities through internships and employer partnerships.

Other suggestions focused on expanding partnerships with community colleges through 2+2 programs, exploring potential mergers or affiliations with other institutions, and developing shared services arrangements to reduce administrative costs.

Revenue enhancement ideas included expanding health sciences programs, adding technology and engineering offerings, increasing summer and weekend programming, and leveraging Rider's geographic location to boost visibility in the region.

Several respondents emphasized the need to improve campus life and student retention by enhancing Greek life, adding weekend activities, upgrading dormitories, and reducing what some called the "suitcase school" effect.

Addressing questions about the Westminster settlement, Loyack clarified that those funds will not provide financial relief. The anticipated proceeds had already been committed as collateral for loans that covered prior-year operating losses, and Rider is obligated to use the settlement money to repay those borrowings.

“The funds anticipated from the Westminster legal settlement had been committed over the last several years as a basis for borrowing money that paid for prior-year cash operating losses. Rider is obligated to use the Westminster settlement proceeds to repay those loans and borrowings,” Loyack said.

" While there is a lot to consider, one thing that is certain is that we must act with urgency if we are going to get beyond the current financial hardships, which have only been exacerbated as of late."

The administration plans to present a restructuring plan with specific options to the Board of Trustees for immediate action. The university said it continues to accept feedback.

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