Moody's said in a recent report that financial exigency, when done as part of a broad restructuring, can be credit positive and play a key role in preserving an institution's viability. "Since approximately two-thirds of higher education expenses are related to personnel, employee cuts are difficult to avoid in times of budgetary crisis. However, the tenure system, along with unionization of faculty and staff in some cases, inhibits significant rapid reductions in compensation," said Moody's.
https://www.insidehighered.com/quicktakes/2019/07/29/moodys-financial-exigency-can-be-credit-positive?mc_cid=9def1992a8&mc_eid=879d6835e3
