Durham-based RTI International announced a third round of job reductions as the nonprofit research institute says it has reduced its workforce by about 35% this year after cuts in federal funding under the Trump administration.
The new round of layoffs will involve 170 U.S.-based staff members, including 76 in North Carolina. In March, RTI announced 340 job cuts, including 177 in North Carolina, which followed 226 layoffs, including 61 in North Carolina, in February.
Combined, that equals 736 total jobs, including 314 in North Carolina.
RTI also announced Wednesday it started an Employee Emergency Relief Fund with a $1 million contribution and will match up to $1 million more in internal contributions to assist RTI staff members. Eligible individuals, who have experienced a “recent financial hardship, will receive grants up to $10,000 each,” according to a release.
“While we must streamline our operations in response to market realities and position the institute for future growth, we remain dedicated to our people, who are what makes RTI great,” says Tim J. Gabel, president and CEO at RTI. “One way we’re supporting our current and former staff members is through our new Employee Emergency Relief Fund.”
Current and former staff members who have experienced financial hardship in the past eight months can apply for up to four grants with a maximum payout of $10,000. Covered events include difficulty affording living expenses due to loss of income or medical expenses. The money does not need to be paid back.
RTI leaders and board members are making financial pledges to the fund.
The nonprofit research institute was formed in 1958 to promote research from the Triangle’s three major universities, Duke, UNC Chapel Hill and NC State. It was the first employer at Research Triangle Park, which is split between Durham and Wake Counties. RTI had employed about 6,000 workers in 100 countries, as September 2023. It wasn’t clear how many are based in North Carolina.
Though initially a North Carolina-driven institution, the group has become heavily reliant on federal funding, including about 84% of its revenue in 2022 and 2023. RTI International received about $2.3 billion from the federal US Agency for International Development, or USAID, for nonmilitary foreign assistance between 2013 and 2022, the sixth most among all organizations, the News & Observer of Raleigh has reported.
That heavy reliance on Uncle Sam has made it vulnerable to cost-cutting efforts by the Department of Government Efficiency, led by Elon Musk.
RTI reported total assets of $494.3 million at the end of its 2023 fiscal year, with revenue of $1.24 billion and expenses of $1.22 billion, according to reports filed with the IRS.
About a dozen RTI executives received total compensation topping $500,000 in 2023, led by Gabel’s $1.4 million, the 2023 filing noted. The group’s board has long included prominent Triangle area executives and higher ed officials.