Facing revenue shortfalls since moving to remote instruction and many students left town, Kansas State University is furloughing an estimated 349 employees according to a Saturday release.
The university estimates it will take a $35 million hit due to COVID-19 prompted actions, which includes about $8 million in Housing and Dining fee refunds. With revenues significantly decreased, KSU officials have elected to furlough employees of auxiliary operations effective May 16 with the goal of bringing the hundreds of workers back on payroll August 1.
The estimated cost reductions as a result of the furloughs is $2 million.
“Early in the pandemic we made two key decisions. The first was to maintain employment levels during this time of limited operations, and the second was to issue refunds to students for housing and dining,” writes Thomas Lane, vice president for student life.
“While these decisions were right for the time, we are no longer able to maintain employment levels given the reduction in revenues. We understand the duress this will cause for our employees, and move forward with a spirit of empathy and compassion.”
Multiple different campus units will be impacted including Housing and Dining Services (207 staff members furloughed, nine-month employees will not be offered Summer employment), Recreational Services (20 staff members furloughed), the Center for Child Development (37 staff members furloughed, 3 remaining on payroll), Lafene Health Center (impacts 48 employees) and the K-State Student Union (37 furloughed).
KMAN will update with comments from university officials.
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