The Johns Hopkins University, the state's largest private employer, said yesterday that it will freeze hiring and salaries, eliminate overtime and lay off some workers in response to a revenue shortfall estimated at $100 million by the summer of 2011.
Top Hopkins administrators will also take a 5 percent salary cut, with the savings going into financial aid as the university tries to protect its students from the recession that is taking a steep toll in higher education. The carnage in the financial markets has reduced Hopkins' endowment by 20 percent. It now stands at $2.4 billion.
The cost-cutting measures will have a ripple effect on the region's economy, affecting not just Hopkins employees but vendors and others who rely on the university to make a living. In total, the Johns Hopkins Institutions employ 38,200. The cuts affect only the university, which employs about 20,000.
"This is unambiguously bad news," said Richard Clinch, an economist at the University of Baltimore who studies local economies. "It will impact everybody from low-wage workers in support jobs to high-wage workers who spend their money in the city going out to dinner."
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