Date: December 22, 2008
To: The Rensselaer Community
From: Shirley Ann Jackson, Ph.D., President and Professor of Physics
Re: Impact of Economic Crisis

On Tuesday, December 16, 2008, Rensselaer implemented an expense reduction measure which Institute leadership had hoped to avoid: we eliminated a number of non-academic positions as part of an Institute-wide staffing reduction. As I have previously shared with you, we examined and implemented several other strategies for reducing our Education and General (E&G) budget over the past few months. However, as turmoil in the financial markets continued, and the general economic decline accelerated, it became clear we needed to reduce recurring compensation expenses, which make up half of the Institute's operating budget. We explored a number of alternatives to reduce our recurring compensation expenses, including furloughs, unpaid work days, a four day work week, salary reductions, and early retirement incentives. After carefully considering each of these options, we determined that a staffing reduction strategy best met the short-term and long-term needs of Rensselaer and its key stakeholders.

Institute leaders were very sensitive to the difficulties our decisions could impose on individuals, and we did not make these decisions lightly. Rensselaer has provided enhanced severance benefits, career outplacement services, and counseling services for all affected staff, in addition to unemployment benefits.

All of us will continue to face challenges in the days and weeks ahead, as our community continues to adapt to difficult circumstances. But we are Rensselaer, and that means we are resilient and resourceful, and we will remain resolute in our determination to meet the challenges we face. By doing so, we will continue to achieve our mission as a top-tier world class technological research university with global reach and global impact, with a spirit of cooperation and an ongoing commitment to academic excellence, leadership, and community.

As 2008 comes to an end, the steps we have taken, although painful, position us as well as possible, as we move into a challenging 2009. Let us prepare, then, to embrace the spring semester with a renewed sense of purpose and focus.

Rensselaer began with a humble but noble mission, and that same noble mission remains the cornerstone of our commitment to academic excellence today. We will continue to build on the foundation of the past to continue to build the Rensselaer of the future.

As always, I thank you for your generosity of spirit and support during these challenging times.

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