University President Dr. John Jasinski and Provost Dr. Doug Dunham made the announcement during a news conference Thursday.
The new changes include 2.8 percent of the university's workforce, 20 individuals, are being laid off.
A hiring freeze has also be implemented.
The university is also transitioning from 19 to 11 academic departments. This change will go into effect on July 1.
The plan will also move several faculty members currently serving as department chairs to full-time teaching positions and reduce the number of adjuncts at Northwest.
The Department of Family and Consumer Sciences and the dance program offered through the Department of Health, Physical Education, Recreation and Dance will be eliminated.
Other changes include the elimination of the summer program at Horace Mann Laboratory School and closure of the Robert P. Foster Aquatic Center.