The Indiana University Foundation has laid off 18 employees from the staff at its Bloomington and Indianapolis offices.

Foundation spokeswoman Barbara Coffman says the job cuts were needed because the administration fee it receives has declined along with the market value of its endowment.

The foundation's endowment was nearly $1.6 billion two years ago, then fell to $1.1 billion during the stock market decline. The value is now about $1.3 billion.

The two foundation offices had 201 employees before Thursday's staff reduction.

IUF was created in 1936 with the mission of maximizing private-sector support for the University. It strategizes, coordinates and executes IU fund-raising goals and initiatives. According to the group, the University received more than $100 million in gifts from more than 100,000 individuals, corporations and foundations in its 2008-2009 fiscal year.

Coffman says the foundation had previously reduced spending through program cuts and attrition. The job cuts are part of an effort to cut $2.4 million from its $26 million operational budget.

The IU Foundation says it ranks among the 15 largest endowments for public universities in the country.