The New School sent separation‑package offers to roughly 40% of its full‑time faculty in early December as leaders move to close a reported $48 million budget gap. Faculty described the notices as abrupt and coercive; university president Joel Towers framed the actions as necessary to address multi‑year deficits and falling enrollment that dropped from about 10,400 in 2019 to 8,800 this fall. Campus governance and shared‑governance norms were central to faculty objections: professors said the timeline and threat of “involuntary reduction” bypassed normal faculty consultation. Campus leaders cited tight credit and urgent cash‑flow needs; trustees and administrators now face pressure to balance rapid cuts with reputational and accreditation risks. For peer institutions, the case underlines how enrollment declines and rising operating costs are prompting swift workforce decisions that test tenure protections, bargaining agreements and donor confidence. Observers say creditors and rating agencies will be watching whether the New School’s plan stabilizes finances or accelerates enrollment fallout.