Analysis: Global Universities Face a Fiscal Reckoning as Deficits Mount

Universities worldwide are grappling with a liquidity crisis, structural deficits and a rising wave of closures and mergers, according to a 2026 higher-education trends report by MyCOS Research Institute, an education consulting firm.

The financial strain spans Europe, North America and Asia. In the U.K., the University and College Union reported in October 2025 that the sector had endured unprecedented downsizing over the previous year, with more than 12,000 jobs cut and another 3,000 marked for elimination. The union estimates that 40% of British universities are currently running deficits.