ANN ARBOR, Mich. (WXYZ) — The University of Michigan announced it was freezing all hiring and salaries amid the coronavirus outbreak. The freezes will go through the end of the 2020-21 budget year.
In an email sent Monday, President March Schlissel told faculty and staff at all three campuses and Michigan Medicine that the university anticipates losing between $400 million to $1 billion through the end of the year.
Along with the freezes, Schlissell outlined voluntary programs for furloughs and reduced hours, construction postponement and the suspension of non-essential expenditures.
He and the chancellors of UM-Dearborn and UM-Flint will reduce monthly salaries by 10% through the end of the year. The university’s remaining executive officers, chief diversity officer and athletic director will reduce their salaries by 5%. The cuts are voluntary and are in addition to the freeze in base salaries noted for employees.
“The University of Michigan is an institution that has stood the test of time for more than 200 years,” Schlissel said. “While it will not be easy, U-M will overcome this pandemic and we will — as we always have — uphold our public mission and the promise we have made to those we serve.”
He said additional measures may be necessary in the months ahead “to address growing consequences of the pandemic.”
“For instance, work that is available now under the current conditions may not be available in future months. We also must keep in mind the operational and resource needs when we are able to ramp back up. This will depend on state orders and federal guidelines, and it’s important to note that it won’t be like flipping a switch,” Schlissel said.
“We’re already working to plan for a more gradual return to normal activity, informed by strong public health guidance. I remain cautiously optimistic that we will be able to deliver a public health-informed fall semester on our three campuses.”
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