Harvard to offer early retirements

Harvard University, the world's richest, said yesterday that it will hold salaries flat for the next academic year, let staff retire early and slow construction of a new campus in Allston to save money.

Harvard President Drew Faust wrote to students, faculty and staff yesterday, saying that the economic downturn will require "taking some difficult steps."

Late last year the Ivy League school shocked the investment and education communities by saying that its $36.9 billion endowment had lost 22 per cent, or roughly $8 billion, in the first four months of the fiscal year that began in July. By the end of June that loss is expected to widen to 30 per cent, Ms Faust reiterated in her letter yesterday.

The news comes at a time when many universities around the country are looking for ways to cut expenses and raise money to try and make up for declines in their endowments.