The Illinois Institute of Technology has laid off approximately 160 faculty and staff members ahead of the fall semester, citing significant financial challenges related to reductions in research funding and a sharp decline in international student enrollment, university officials confirmed.

In a message to employees, Illinois Tech President Raj Echambadi outlined the impact of "severe restrictions on international students" coupled with cutbacks in federal research support. These factors have compelled the university to implement targeted staff reductions to address the financial shortfall and maintain its core mission as an educational institution.

Illinois Tech, which has its main campus in the Bronzeville neighborhood and a law center in downtown Chicago, typically enrolls a large number of foreign students. More than 40% of the university’s student body was from outside the United States in fall 2025, with international students comprising six in 10 graduate enrollees. Enrollment data indicate a decline of roughly 1,200 international graduate students between fall 2024 and fall 2025, out of a total campus population of approximately 7,500 students.

The university did not specify how the layoffs were distributed across departments. However, several faculty members described the cuts as extensive and noted they were exacerbated by months of attrition amid ongoing rumors of financial instability. The university spokesperson acknowledged the layoffs’ significant effects on those affected and stated that the institution is committed to providing severance packages.

The faculty senate expressed strong dissatisfaction with the university’s leadership. On the eve of the layoff announcements, the senate issued a vote of no confidence in President Echambadi and Provost, criticizing their handling of the financial crisis. In a letter addressed to the university’s attorney, faculty leaders cited a lack of transparency and slow decision-making, arguing that the administration’s approach had worsened the situation.

“The faculty do not trust the current senior administration to make the necessary decisions to navigate this transition in a way that meets our responsibilities to students and accreditors,” wrote Daniel Bliss, political science professor and faculty senate chair.

Several employees reported that communication about the layoffs has not been shared with students, many of whom have expressed anxiety about the university’s future and whether essential courses will remain available. The fall semester is scheduled to begin on August 17.

The financial difficulties facing Illinois Tech mirror broader challenges across U.S. higher education institutions, which have been affected by changes in federal policies restricting international student admissions and cuts to research funding implemented under the previous administration. International students, who typically pay higher tuition rates, have been a crucial revenue source for many universities, including Illinois Tech.