News Summary
RTI International, a research nonprofit based in Durham, has announced layoffs affecting approximately 120 employees due to continuous federal funding cuts. This aligns with the organization’s strategic realignment to enhance operational efficiency and mitigate the impact of recent financial challenges. The workforce reduction totals a 35% decrease since the start of 2025, as RTI seeks to adjust its operations amid ongoing budget constraints. To support affected employees, an emergency relief fund has been established, offering financial assistance during this transitional period.
Durham, North Carolina
RTI International, a prominent research nonprofit based in Durham, has announced additional layoffs as it navigates ongoing federal funding cuts. This latest workforce reduction affects approximately 120 employees, including around 75 in North Carolina, and marks a continuation of recent staff downsizing efforts.
Context of the Workforce Reductions
The layoffs are part of a broader strategy by RTI to realign its organizational structure with the aim of improving operational efficiency, promoting greater collaboration, and enhancing focus on client needs and scientific impact. The organization’s CEO, Tim Gabel, indicated that these organizational changes are intended to strengthen the institute’s long-term prospects amid a challenging funding environment.
Impact and Recent Staff Cuts
RTI International has been reducing its workforce since early 2025. This latest round affects about 120 employees, contributing to a total workforce decrease of around 35% since the start of the year. Over 400 employees across North Carolina have been impacted by job cuts since the beginning of 2025. Earlier reductions included 340 U.S.-based job cuts in March, as well as 226 temporary layoffs announced in February.
Financial Dependency and Funding Cuts
RTI relies heavily on federal funding, with the U.S. government accounting for roughly 84% of its revenue. In 2023, the organization received approximately $168 million through the now-closed U.S. Agency for International Development (USAID), which made up about 10% of RTI’s revenue. A significant decrease in grant funding from the National Institutes of Health (NIH) has been reported; RTI received $397 million in 2024, but only about $59 million so far in 2025.
Operational Challenges and Cancellations
In March, RTI informed the North Carolina Department of Commerce of an “unprecedented number” of federally funded project cancellations and work stoppages. The reduction in federal contracts has led the organization to reassess project priorities and seek stability through diversification.
Organizational Changes and Focus Areas
Part of RTI’s reorganization involves shifting roles for several senior leaders to better align with strategic priorities. The organization is now focusing on the commercial health and defense sectors to secure more stable sources of income in the face of federal budget constraints.
Support Initiatives and Future Outlook
To support affected employees, RTI has launched an emergency relief fund offering up to $10,000 for current and former staff facing financial hardship. The fund, with an initial endowment of $1 million, aims to provide immediate assistance amid ongoing financial uncertainty.
Despite these challenges, RTI International states it remains committed to adjusting its operations to secure long-term strength and growth. The organization sustains a robust portfolio of nearly 4,000 projects annually for over 1,100 clients across various sectors and maintains a global presence with about 6,000 employees operating in 90 countries.
Historical Background
Founded in 1958, RTI International originally supported research collaborations involving Durham’s major universities—Duke, UNC Chapel Hill, and NC State. Over the decades, it has expanded its global footprint, adapting to the evolving landscape of research and development funding.
Summary
The ongoing federal funding reductions have significantly impacted RTI International’s workforce and operations. The recent layoffs and project cancellations represent the latest steps in the organization’s effort to adapt and remain resilient in a difficult financial environment. RTI continues to prioritize organizational restructuring, diversification of funding sources, and employee support initiatives to position itself for future stability and growth.
FAQs
How many employees did RTI International lay off? Approximately 120 employees, including around 75 in North Carolina.
What percentage of RTI’s revenue comes from the U.S. government? The U.S. government accounts for about 84% of RTI’s revenue.
How much funding did RTI receive from USAID in 2023? Approximately $168 million, representing about 10% of its revenue.
What was the recent NIH grant amount reported in 2024 and 2025? $397 million in 2024 and about $59 million so far in 2025.
How many projects does RTI typically handle annually? Nearly 4,000 projects for over 1,100 clients worldwide.
Schema
Type: News Article
Headline: RTI International Announces Additional Layoffs Amid Ongoing Federal Funding Cuts
Location: Durham, North Carolina
Headline Summary: RTI International has laid off approximately 120 employees due to federal funding reductions, as part of organizational restructuring efforts.
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Additional Resources
- Business North Carolina
- News Observer
- Axios
- Wikipedia: RTI International
- Google Search: RTI International layoffs
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