The last 18 months have been extraordinary, said President David Skorton, and possibly one of the most challenging periods in Cornell's history.

But in looking forward, all the evidence supports an outlook of "hope, optimism and confidence," Skorton said to about 400 staff and faculty members in the Schwartz Center for the Performing Arts' Kiplinger Theatre Oct. 12. The annual talk -- Skorton's fourth -- was sponsored by the Employee Assembly.

He began by thanking employees for "staying the course" and continuing to accomplish goals despite a smaller workforce. Faculty and staff have also been providing "hugely, hugely valuable feedback" in ways to increase efficiencies and save money. "I thank you very much for being part of this process," he said.

In the continuing effort to build a university that is stronger yet leaner, Skorton cited recently announced changes that will save $90 million by boosting efficiencies in areas such as procurement, information technology, facilities and utilities and by simplifying the university's complex organizational structure. Those changes will significantly reduce the 2015 budget deficit of $135 million while retaining jobs, he said.

"My goal is to do as much as we can, and at least go half the distance -- at least -- in savings that will not require workforce reduction," Skorton said.

In eliminating jobs, he said, "we're going to be targeted in how we do it. We're going to work with you; we're going to continue to be transparent."

And while there is no firm timeline for the changes, he said the administration is getting closer to making key decisions.

Meanwhile, Skorton encouraged employees to apply for open positions, emphasizing that jobs are carefully vetted before they are posted. The university's hiring pause, he added in answering a question, will continue into the foreseeable future.

In imagining the Cornell of the future, Skorton said, perspective is crucial. "This is the 145th year of this university, that was just rated 15th university in the world," he said. "We're going to be having this conversation for a long time … Have confidence in the future, because I do. There is no reason not to."

He urged employees to keep sending suggestions for cost savings. "Don't be bashful to send me an e-mail. … give us your input. … we greatly value it."

And while recent news has focused on challenges, he noted, it's important to remember the university's strengths.

Cornell continues to attract a talented and increasingly diverse student body -- including this year's most racially diverse freshman class in the university's history, he said. As an employer, Cornell has earned recent recognition from AARP, Working Mother magazine and other sources. And the university's faculty continues to bring prestige and recognition through a variety of avenues.

The event began with special recognition to the staff of Gannett Health Services, who collectively earned this year's Employee Appreciation Award for their deft response in handling the H1N1 virus on campus. It was the first time the award, which recognizes outstanding contributions and continuing service, went to a group rather than to an individual.

Speaking as a physician, Skorton urged all employees to get vaccinated against both the seasonal flu and H1N1. "And if you do come down with something … don't be afraid to stay home and take care of yourself," he said.

"It's nice to hear that he's one of us," said Karen Moore, a finance transactions specialist for the College of Agriculture and Life Sciences. "He's our leader, but he's one of us."