This qualitative study explored how neoliberalism contributes to the fragmentation of organizational identity in Saudi universities and the implications of this fragmentation. Semi-structured interviews were conducted with 19 faculty members from a Saudi public university. Thematic analysis revealed that neoliberal policies relating to governance, funding, financial sustainability, marketization, and performance metrics have profoundly impacted Saudi higher education. The findings highlight five key themes: (1) External stakeholders increasingly influence governance and decision-making, diminishing internal voices; (2) Pressure to attract external funding diverts focus from educational mission; (3) Financial sustainability is prioritized over academic goals; (4) Market-driven values eclipse traditional academic values; (5) Performance measures are misaligned with academic priorities. The implications include compromised teaching quality, commercialization of research, loss of academic freedom, and tension between demands for global competitiveness versus local relevance. This fragmentation of organizational identity creates an incoherent institutional vision and direction. Strategies to foster a more cohesive academic environment emphasize fostering shared vision and values, promoting interdisciplinary collaboration, nurturing supportive academic culture, leveraging technology, and continuous self-reflection. The study concludes that neoliberalism has detrimentally impacted Saudi universities' organizational identity. Understanding this influence is critical for developing policies and practices that uphold academic integrity and purpose.