Temple University moved into the fiscal 2027 budget cycle with additional cost reductions, laying off about 40 employees as it tries to close a projected deficit. Temple President John Fry said the university cut $60 million in expenses and laid out a plan to reduce what had been forecast as an $85 million budget gap, with the layoffs representing less than 1% of its workforce. Temple attributed its budget pressure to elevated costs and the effects of prior enrollment declines. The university previously reduced layoffs during fiscal 2026, and it has since excised hundreds of millions in operating expenses since 2021. Temple also reported an increase in first-year undergraduate enrollment for the class of 2029, including a 9.2% year-over-year rise to 5,379 students. The development fits a broader higher education pattern of deficit-driven restructuring across public and private institutions, where staffing and enrollment trends can quickly drive operational changes. For university leaders and boards, it underscores how quickly budget planning can tighten as revenue lags and cost commitments—especially labor—remain difficult to unwind.