Job cuts are on the horizon for Research Triangle Park, and they’re coming from some prominent names.
Lenovo, the Chinese tech giant, recently disclosed plans to lay off around 3% of its staff across the United States, which will inevitably include a yet-to-be-determined number of positions at its Morrisville location. It’s noteworthy that the tech firm has a larger footprint in North Carolina than any other state.
Additionally, the National Institutes of Health (NIH) confirmed this week that employees at their RTP facility will also face layoffs. This decision comes after a Supreme Court ruling enabling further budget cuts initiated by the Trump administration. The NIH’s Environmental Health Sciences headquarters is situated in the park, marking its only campus outside of Washington, D.C.
Brianna Clarke-Schwelm, the Executive Director of the NC Global Health Alliance, expressed her concerns: “Any cuts to HHS institutions, including the NIH, will ripple through the system. These measures will directly affect federal workers, their research, and ultimately affect every American. “
Previously, major financial austerity measures have already impacted organizations like RTI, and Clarke-Schwelm highlighted that the talent bleed might affect the state’s reputation as an innovation hub.
“If we can’t keep our top researchers because we’re not offering competitive pay, they may leave North Carolina. Imagine going to the hospital and that renowned doctor isn’t there anymore when your family needs care,” she warned.
Regarding Lenovo, we don’t yet know how many jobs will be affected within their Morrisville campus, but economist Mike Walden from NC State speculated that turbulent tariff situations and trade issues with China might play a role in their decision-making.
“We’re lucky to have a lot of positives in the Triangle, but we’re experiencing unusual times. We have a federal government pulling back, plus navigating a trade and tariff war, which we need to be aware of,” Walden remarked.
While Walden believes Lenovo’s layoffs don’t point to a broader issue facing RTP, he suggested that the area might need to seek new investment partners, especially as federal budget cuts grow.
“I’m optimistic that foreign companies will still find North Carolina and RTP attractive. That said, who exactly those investors will be may change significantly in the next 5 to 10 years,” he added.
Lenovo also provided a statement to ABC11 on Wednesday:
“As with any business, we regularly assess our operational costs to stay aligned with market conditions and make personnel changes as needed. We’re currently implementing strategic reductions in specific sectors of our North American operations while continuing to invest in initiatives that promote growth and transformation throughout the company.”
