Stanford University will lay off at least 363 employees this fall as part of $140 million in budget cuts due to rising costs and changes in federal funding, including a sharp increase in the endowment tax.

In the letter, Stanford University cited “ongoing economic uncertainty,” looming federal cuts and rising operational costs as the reasons for the staffing cuts. The university has also made a $140 million budget cut in its general fund for the 2025-26 school year, as SFGATE previously reported.

The California research institution has been buffeted by shifting federal funding policies and a forthcoming increase to the endowment tax.