Colleges and Universities have, out of necessity, started thinking more like a company. Part of that is often new accounting models. One such way of modeling costs anscribes indirect costs to programs (utilities, building maintenance etc). Low enrollment graduate and doctoral programs look really bad on a balance sheet when you factor in these indirect costs and they will never look good. In fact they will always lose millions per year under this model. It is frankly an inappropriate budgeting model for colleges to adopt because academic programs are not product lines, but here we are.
It seems like it's just poor management. I understand they are not product lines, but a university has bills to pay. They have to pay people salaries, benefits, maintain those builds, labs, libraries, etc. The money to do that has to come from somewhere and in the hard times, the fields with the least likely chance of generating revenue to keep the university afloat will see hits. It seems like the university though has put itself in the hard times by taking on a large amount of debt: https://chicagomaroon.com/43960/news/get-up-to-date-on-the-u.... It seems like its less malicious and just risk taking gone wrong.
It's not that different in the corporate world. Lots of companies make bad bets that then lead to layoffs, but not always in the orgs that actually were part of the bad bet. I've seen many startups take on too much risk, then have to perform layoffs in orgs like marketing, recruiting, sales, HR, etc. even if those orgs weren't responsible for the issues that the company is facing.
