Harvard University's investment arm is expected to outsource management of most of its $35.7 billion endowment and lay off roughly half the 230 staff, the Wall Street Journal reported on Wednesday, citing people familiar with the matter.

Harvard Management Co, which oversees America's largest endowment, will close its internal hedge funds and lay off traders by mid-year, the report said, citing one of the people.

Other layoffs will occur by the end of 2017, according to the report.

The shakeup is part of a sweeping change by the university's new endowment chief, N.P. Narvekar, the Journal said.

Harvard Management Co did not immediately respond to a request for comment.