Omaha's Creighton University has announced that they are furloughing 190 staff members and employees amid the COVID-19 coronavirus pandemic.
On Wednesday, the University released a statement saying, "Creighton University, like almost every college, university, business and organization in the country, is experiencing the economic impact of the COVID-19 pandemic on its operations." Creighton says the majority of the positions affected are jobs that can't be done from home.
Creighton President Rev. Daniel S. Hendrickson says Creighton is not alone in having to make such a difficult decision. “Like other institutions of higher education, Creighton has experienced a dramatic operational shift to virtual formats and remote working arrangements, mostly to great effect, thanks to innovative and committed faculty and staff. However, we also recognize that this shift is resulting in a significant lack of work for some employees, and others may not be able to work from home at all because of their roles.”
Creighton says the immediate financial impact of the pandemic to the school is approximately $10 million for the fiscal year that ends June 30.
Furloughed employees will retain their seniority with Creighton while the university will continue to pay its regular contribution and the furloughed employees’ portion of medical insurance premiums.
The University also announced the creation of the Creighton United in Relief and Assistance (CURA) Employee Fund. Creighton says the fund will benefit employees who are unable to work because of the pandemic and the closure of campus. In addition, the University’s executive team has taken a voluntary pay cut, and all members of the President’s Council have pledged their support to the CURA Employee Fund.
In other cost saving measures, the university will make will not offer merit pay increases this year, will cut discretionary spending and suspend all employer contributions to the University’s employee retirement plan effective July 1.
Creighton says expense reductions of nearly $35 million are required and depending on the final enrollment and residential housing scenarios, more expense reductions may be needed.