Carnegie Mellon University announced layoffs of 75 employees — about 10% of staff — at its Software Engineering Institute (SEI), citing changing federal funding priorities and the institute’s unique status as a federally funded research and development center. Vice President for Research Theresa Mayer framed the reductions as a result of an altered pipeline of federal awards and an SEI financial structure tied to Department of Defense sponsorship. SEI, a major recipient of federal cybersecurity and software-engineering contracts, delivered $148.8 million in grants and contracts revenue in fiscal 2024. University leaders emphasized Carnegie Mellon’s broader fiscal health for FY2026 but said the cuts were unavoidable for the institute despite prior cost-saving measures. The university previously paused merit raises, limited hiring and pursued voluntary retirements as part of a broader cost-management plan. The move signals realignment pressures for research centers that depend heavily on federal agencies and illustrates how shifting federal priorities can cascade into workforce reductions and program realignment at major research universities.