Dundee University has been engulfed in crisis since a £30 million funding deficit and potential job losses were revealed last November.
The alarming headline was swiftly followed by Principal Iain Gillespie’s sudden resignation.
And on March 11, the university announced the deficit had grown to £35 million – and as many as 632 full-time equivalent posts will be cut.
Angry staff began had already gone on strike, and the university was given access to £15 million lifeline support from the Scottish Government.
Our step by step timeline is set out below.
Resignations follow deficit revelation
On November 13, The Courier reported job losses at Dundee University were “inevitable” as bosses grappled with a £30 million blackhole in the finances.
Principal Professor Iain Gillespie wrote to staff warning there would have to be reduction in staffing levels.
This prompted a flurry of interest as many insiders reached out to share serious concerns.
The cause of the funding crisis is complex, though university bosses blamed a significant reduction in international students this year.
We also revealed how, as a result of recruitment problems, 300 empty student hall beds were costing around £2 million.
But the scale of the deficit prompted accusations that the university’s executive had allowed it to “balloon” overnight.
Other universities have also revealed a deficit. Abertay University reported a loss of £576,000, also revealing it had under-recruited students.
5-star principal’s largesse
Tough criticism from inside the university was aimed at Mr Gillespie. Staff were critical that he booked first class flights to the Far East and enjoyed 5-star hotel stays at the university’s expense.
The high spending left many furious and prompted questions about how the university’s finances had been handled.
We also revealed that months before his email warning of job losses, the university’s governing body handed Mr Gillespie a pay rise.
It took his salary to £305,000, nearly double the amount paid to Prime Minister Sir Keir Starmer.
Within weeks Mr Gillespie announced his sudden exit from the university.
There was also an apparent exodus of other senior figures.
Governance and management concerns
The confusion about how such a large blackhole could develop also prompted questions from local politicians about who knew what and when.
The powerful “court” which oversees the running of Dundee University has come under scrutiny as a result.
The Courier also revealed how the university hired a senior member of staff despite an ongoing misconduct investigation by her previous employer.
In February, the chair of this powerful body resigned.
“The scale of this failure of governance is a scandal,” one insider said.
Government bailout
The Scottish Government faced questions after concerns about the future of the university reached Holyrood.
In her 2025-26 budget, finance chief Shona Robison singled out Dundee University as facing challenges.
She said the university would be given access to a £15 million emergency loan. The Courier has taken a look at how that might help here.
Bank loan negotiations
On January 28, The Courier revealed bosses at the university were in negotiations to secure a bank loan to fund a redundancy scheme.
Securing the fund for a redundancy scheme would allow the institution to lay-off staff and make the savings required to close its £30 million deficit.
Sources at the university described the success of the discussions as “critical” to any financial recovery.
They say that the only way to reduce the deficit is with a significant reduction in the pay bill, prompting fears of up to 500 job losses.
What happens next?
On March 10 the university court met to discuss the first steps of the recovery plan. This will likely include the number of potential job losses.
On Tuesday March 11 the university announced the scale of jobs losses, which The Courier covers here.
Read more in detail on the twists and turns:
- Iain Gillespie: Downfall of the ‘five-star’ principal who could not escape Dundee University financial crisis
- How Dundee University crisis prompted major executive shake-up
- Dundee University staff overwhelmingly vote ‘no confidence’ in bosses over financial crisis
- Dundee University: Key ‘court’ roles under scrutiny as crisis deepens
- Dundee University’s China chief hired during misconduct investigation by previous employer
- 3 Dundee University successes achieved while bosses preside over financial crisis
- EXCLUSIVE: SNP universities chief refuses to commit to saving Dundee University
- Dundee University must reveal what went wrong, say SNP education ministers
- Dundee University union leader says Tay Cities Deal partly to blame for funding crisis
- EXCLUSIVE: Dundee University negotiating bank loan to fund redundancies
- Call to pause Dundee University vice principal’s £360-a-day ‘job for life’
- EXCLUSIVE: New Dundee University principal breaks silence on crisis facing historic institution – and his rescue plan
- EXCLUSIVE: Fears Dundee University job losses could hit 500 as John Swinney urged to step in
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EXCLUSIVE: Dundee University’s top forensic research centre faces axe
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What will £15m emergency loan mean for struggling Dundee University?
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