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Administration is moving forward with plans to significantly reshape The New School. President Joel Towers announced the changes in a university-wide email on Monday, Nov. 17. 

“Given our current financial challenges, every area of the university will need to prepare for changes,” Towers said. 

The Board of Trustees endorsed the plan at a meeting last week.

The changes include:

• A two-college model
• Employee-related measures with cuts in compensation and reduction of teachers and staff
• Discontinued classes and programs

Eugene Lang College of Liberal Arts and The New School for Social Research will be one academic unit; Parsons School of Design, College of Performing Arts, and the Media will be the second academic unit. 

Towers called the two-college model “a natural progression of many years of planning” to create clearer pathways for students and a more equitable, efficient, and flexible structure.

Employees were offered voluntary options to leave including early retirement and separation programs for eligible faculty and staff. 

Towers made clear that some involuntary layoffs may be necessary if voluntary measures don’t meet their needs. 

There is a freeze on hiring temporary administrative employees, as well as a review of all existing temporary administrative staff positions.

In addition, the university will also implement  temporary (up to 18 months) tiered salary reductions of 5% or 10% for the highest paid employees. Salary reduction will be based on compensation. 

Retirement contributions will also be paused for up to 18 months. Without employer retirement contributions, employees’ future retirement savings could be significantly impacted.

Full-time faculty in all areas will also be required to teach five courses per year. Academic leave will also only be offered once every five years equally across the university.

The university is pausing doctorate program  admissions for the 2026-27 academic year, except for the clinical psychology program.

Programs with low demand will also be discontinued. 

Spring 2026 and the 2026-27 course offerings will be adjusted based on enrollment, meaning some low-enrollment classes may not be offered or could be canceled. 

Every college and department has been advised to curtail discretionary spending. Budget managers recently received a memo outlining this mandate.

The university aims to balance its budget by the 2027-28 academic year with this new plan. 

“Through it, we will reduce costs, retire the university’s ongoing structural budget deficit, and reallocate resources in alignment with our core mission of education, research, scholarship, and creative practice,” wrote Towers. 

Provost Richard Kessler sent a follow-up email Tuesday, Nov. 18 reassuring students that their academic paths will not be disrupted. Kessler stated that programs will continue as planned, and, “you will continue to have the curriculum, courses, and support you need to make progress and complete your degree.”

The 2025-26 budget projected a $31 million deficit, but low enrollment and rising costs have increased it to $48 million, marking the third consecutive year the deficit has exceeded $30 million.

“Together with efforts to reduce real estate and other infrastructural costs, these actions place us squarely on a path to meet our budgetary obligations and position us for growth and investment in the years ahead,” Towers said.