CHARLESTON, W.Va. -- Mountain State University announced Monday that it will lay off half its employees by September, in the most recent blow after the school lost its accreditation.

"This is a difficult decision," Jerry Ice, chairman of the MSU Board of Trustees, said in a news release. "The reductions are not about performance issues. MSU employees are hardworking and dedicated. Their contributions to the university, its students, and their communities are greatly appreciated."

The 146 employees affected by the cuts were notified Monday that their employment with the university will end Sept. 21. The layoffs included 132 from MSU's Beckley campus, two in North Carolina, nine in Martinsburg, one in Pennsylvania, and two in Florida. Cuts were made at all administrative, faculty and staff levels, school officials said.

The layoffs come just weeks after the Higher Learning Commission, the regional monitoring agency that accredits MSU, withdrew MSU's general accreditation for systemic breakdowns in leadership, program oversight and student relations.

MSU has said it plans to appeal the HLC's decision on the grounds that the ruling was "arbitrary, capricious and not based on substantial evidence."

"This is painful for everyone," said Andrew Wheeler, chairman of MSU's Faculty Senate. "And if we don't win the appeal, it will still continue."

MSU employs 335 full-time employees, said school spokesman Andy Wessels. 

In addition to its main campus in Beckley, MSU has branch campuses in Martinsburg; Center Township, Pa.; Mooresville, N.C.; and Orlando, Fla.

Mountain State University was the 99th-largest private employer in West Virginia last year, according to Workforce West Virginia.

"This is very difficult news to hear and say, and it is done with a heavy heart," said Richard Sours, interim president of MSU. "The university is committed to assisting employees in securing other jobs and identifying resources to help them and their families manage the emotional, financial, and job search challenges."

MSU will provide a series of workshops and services for MSU employees including résumé writing, emotional counseling and job search opportunities at the Career Service Center on the Beckley campus.

Mountain State's accreditation problems have already devastated the school's finances.

MSU's net revenue declined 85 percent in the first 11 months of the 2012 fiscal year, according to a report by Moody's Investor's Service. MSU is heavily reliant on student tuition and fees, so the mounting accreditation problems have sent students packing and alternatively hurt the university's bottom line.

In 2010, student tuition and fees made up 92.1 percent of revenues at MSU, according to a Moody's report.

As of April, MSU had 3,110 full-time students and 1,632 part-time students.

MSU also has a direct debt of $27 million and an overall debt of almost $34 million, which includes operating leases and pension obligations.

Last week, Sours said a budget reduction committee was reviewing the school's finances, which would include layoffs. He also said that MSU planned to sell some of its property and liquidate other assets. 

That new budget had been submitted to the Board of Trustees for approval as of Monday.  Wessels did not respond to questions on Monday about what MSU's new budget will entail.

Reach Amy Julia Harris at amy.har...@wvgazette.com or 304-348-4814.