Columbia University's investment portfolio fell by 15 percent over the last six months of 2008, the Columbia Spectator reported. The university's loss was not as great as that experienced by some of its peers, the Spectator reported, because it relies more on government grants, private gifts and contracts, and tuition than on its endowment. University President Lee Bollinger told the Spectator that financial and need-blind admissions are untouchable and the university will do its best to avoid a hiring freeze, which he said would stop the university's momentum. To prepare for these budget cuts, each individual "budget unit" -- including schools and offices -- will have to plan for an 8-percent decrease in revenue from the endowment in the next fiscal year.
Thermal Dynamics, a West Lebanon, N.H.-based company founded by former Dartmouth professors that specializes in welding and plasma cutting products, laid off 50 of its employees in light of the economic downturn, according to MSNBC. Sales at the company declined during the fourth quarter of 2008 primarily because the company's distributors raised prices, said Wes Morgan, the director of global communications for Thermadyne, which owns the West Lebanon company. Thermadyne CEO Paul Melnuk said in a letter to all employees that the company should expect to be profitable in 2009 despite the sales decline, but that there will be both temporary layoffs and permanent job cuts. Early retirement, four-day work weeks and extra vacations will be offered to lower payroll costs and prevent future job losses, Melnuk said in his letter. Thermal Dynamics was originally founded by Thayer School of Engineering professors James Browning and Merle Thorpe in 1957.
To close its $15-million budget gap, the University of Maine system may begin laying off employees or requiring them to take mandatory, unpaid vacation days, The Maine Campus, the university's student newspaper, reported. The system has until June 30 to address the deficit. A large portion of UMS's budget goes toward employee compensation, salaries and benefits, Tracy Bigney, chief of human resources and organizational development officer for UMS, told The Maine Campus. Bigney said UMS may be able to minimize the need for layoffs by reducing expenditures. Paint shop employee Chris LeClair said in an interview with The Maine Campus that departments like his will take the brunt of any layoffs because their employees' severance packages are the lowest. The University of Southern Maine and branches at Fort Kent, Machias and Presque Isle will likely be the hardest hit, LeClair said in the interview.
