Portland State University announced it will cut 36 employees and close two departments as it works to close a $35 million budget shortfall over the next two years. The university said its “final plan” followed months of negotiation with the faculty union, making the reductions a labor-and-governance flashpoint for affected departments. The decision highlights how public institutions under budget stress are shifting costs through personnel reductions and program consolidation. It also points to the operational timeline universities face when state funding, enrollment dynamics, and contract costs converge. For campus stakeholders, the move intensifies scrutiny of how institutions identify program value, manage faculty impacts, and preserve instructional capacity while meeting short-term financial targets.