University of Haifa Faces Major Financial Crisis, Cuts 170 Lecturers' Positions

The University of Haifa is grappling with an annual deficit of approximately 60 million shekels and is in advanced stages of formulating a recovery plan. The university has committed to the Planning and Budgeting Committee (PBC) of the Council for Higher Education to implement cuts totaling 160 million shekels over the next four years. Last week, 170 non-permanent lecturers out of 1,200 were notified of layoffs or reduced work hours. Senior faculty members are also expected to increase their teaching hours, which significantly impacts their research conditions. It remains unclear if administrative staff will face layoffs.

The primary cause of the financial crisis is the university’s pension obligations, similar to issues previously faced by the Hebrew University. The State Comptroller warned of the problem in 2022, highlighting a cumulative deficit exceeding one billion shekels. Although the university was classified as red by the PBC, no recovery plan was submitted until early 2024, with approval granted in May. The deficit is attributed mainly to the end of actuarial reserves in the pension fund, creating a 42 million shekel annual shortfall, and a change in the research funding model that disadvantages social sciences and humanities, costing the university an additional 16 million shekels annually.

The PBC plans to assist by delaying the funding model change and increasing student quotas. Another cost-saving measure includes a planned merger with the Kinneret Academic College by 2030, turning it into an engineering faculty to boost funding. This move aims to strengthen northern Israel amid ongoing regional challenges but may create competition with Tel Hai University in Kiryat Shmona.

Negotiations are ongoing with three staff unions. The most affected are non-permanent lecturers, many of whom received late layoff notices, complicating their job search. The union criticized the university for not considering reducing senior faculty workloads, where some work beyond full-time hours. Senior faculty face increased teaching loads from six to eight weekly hours and possible cuts to role allowances, potentially replaced by reduced excellence grants. The senior faculty union has condemned unilateral measures affecting salaries and working conditions.

The administrative staff union is negotiating to minimize impacts. The University of Haifa, a public research institution founded in 1963 and independent since 1972, has about 17,000 students across seven faculties and 18 schools, including a recently established medical school. Its budget rose from 792 million shekels in 2024/25 to 800 million in 2025/26, with pension expenses increasing accordingly. Despite the crisis, the university emphasized ongoing academic growth, new programs, and increased external funding. The PBC has not commented on the situation.