The University of Michigan announced cuts Monday to all three campuses — Ann Arbor, Dearborn and Flint — and Michigan Medicine, include reductions in hours, pay and nonessential expenses.

In addition, President Mark Schlissel said Monday in an open letter addressed to colleagues, there would be hiring and salary freezes, and if the financial situation worsens, even deeper cuts, including layoffs, may be necessary.

He also suggested that the university did not plan to tap into the endowment because it "supports funds that can be used only for a specific purpose," and U-M is committed to honoring donor agreements and "support scholarships, important programs and the long-term stability of the university."

The pandemic, he said, has adversely affected the community, "creating personal difficulties and adding fear and uncertainty to our lives." It also "has threatened the financial stability and future strength of our university."

The university estimates a loss of $400 million to $1 billion through year-end.

"We are striving to protect employees’ jobs as much as possible even as the pandemic, and society’s response to it, continues to evolve," he said. So far, the university has weathered "the initial stages of the pandemic and maintain as many aspects of normal life as possible for employees."

Read more:

Michigan's contact-tracing effort encounters problem, criticism

Fear dominates poll of financial impact of coronavirus on Michiganders

However, he added that "virtually all sources of revenue" are now in question, while, at the same time, the university also is faced with "managing new costs that arose quickly."

Among the cuts:

New expenses: All nonessential expenditures, such as travel, conferences, consultants are suspended and new financial commitments will be avoided until further notice. Research projects fully funded by federal sponsors can continue.

All nonessential expenditures, such as travel, conferences, consultants are suspended and new financial commitments will be avoided until further notice. Research projects fully funded by federal sponsors can continue. Hiring: All hiring is frozen with the possible exception of staff or faculty in roles considered critical and those fully funded by federal grants. Student employees, however, can be hired.

All hiring is frozen with the possible exception of staff or faculty in roles considered critical and those fully funded by federal grants. Student employees, however, can be hired. Pay increases: There will be no increases to base salaries through the end of the upcoming budget year, including merit increases with the exception of those related to faculty and staff promotions that have already been approved.

There will be no increases to base salaries through the end of the upcoming budget year, including merit increases with the exception of those related to faculty and staff promotions that have already been approved. Salary reductions: Schlissel cut his monthly salary by 10% starting May 1 through the end of this calendar year. For the same period, the Dearborn and Flint chancellors reduced their salaries by 10%. The remaining executive officers, chief diversity officer and athletic reduced salaries by 5%.

Schlissel cut his monthly salary by 10% starting May 1 through the end of this calendar year. For the same period, the Dearborn and Flint chancellors reduced their salaries by 10%. The remaining executive officers, chief diversity officer and athletic reduced salaries by 5%. Reduced hours: There are two voluntary programs for regular staff in noncritical operations. With unit approval, staff may temporarily leave their position on unpaid furlough during the COVID-19 pandemic or temporarily reduce their work hours.

There are two voluntary programs for regular staff in noncritical operations. With unit approval, staff may temporarily leave their position on unpaid furlough during the COVID-19 pandemic or temporarily reduce their work hours. Construction: Contractors have paused construction on campus.

"We are being challenged at levels never before seen," Schlissel wrote, "but I remain confident in our ability to respond with creativity and a shared commitment to our university’s mission and to one another."

Contact Frank Witsil: 313-222-5022 or fwitsil@freepress.com.