In the letter, Stanford University cited "ongoing economic uncertainty," looming federal cuts and rising operational costs as the reasons for the staffing cuts. The university has also made a $140 million budget cut in its general fund for the 2025-26 school year, as SFGATE previously reported.

Last month, President Donald Trump signed the One Big Beautiful Bill Act. It raised the tax on net investment income for universities with large endowments from about one-and-a-half percent to eight percent. Stanford’s endowment last year was nearly 38 billion dollars.

Stanford University said on Tuesday it has laid off over 360 employees, citing budget constraints that it attributed to the federal funding policies of U.S. President Donald Trump. The Trump administration has threatened to cut federal funds for universities over pro-Palestinian protests against U.