Dundee University could cut over 600 jobs from its 3,000 strong workforce, as part of shock plans announced today.
Around 20 per cent of the workforce could be laid off as managers struggle to reduce a £35 million deficit – a £5 million increase on the original shortfall.
Of the total lay-offs, around 197 are projected among academic staff, while the remaining 435 will be among professional services employees.
The structure of the university will also be overhauled from eight academic schools to three faculties.
There will be a 20 per cent reduction in module delivery and a reorganisation of research into a small number of focused institutes.
Interim principal Professor Shane O’Neill shared the news with staff at a university-wide principal’s question time event on Tuesday afternoon.
There was said to be shock in the room as the scale of the job cuts were announced, though Mr O’Neill’s presentation was largely heard in silence.
Mr O’Neill said: “The current financial crisis has challenged us to ask some very fundamental questions about the size, shape, balance and structure of the university.
“The measures we are now proposing would make an essential contribution in our becoming a more appropriately balanced and restructured institution.
“Getting there will not be easy and we are determined to take on board all relevant lessons from the past and the various factors that contributed to the current position.
External probe
“We are committed to an external investigation into what went wrong, which will be co-sponsored with the Scottish Funding Council, and we will accept and act on the findings of that investigation.”
Savings of £17 million have already been identified.
Mr O’Neill said managers will exercise “tight control”.
He added: “In setting out our proposals towards a financial recovery and a sustainable future we have adopted an approach of frank realism and honest self-criticism in our assessment of the current situation and the challenges faced.”
‘Hammer blow’
Jo Grady, of the University and College Union, said the decision is a “hammer blow” for staff paying the price for “egregious management failure”.
She said: “We are clear that there is an alternative to sacking staff and cutting courses, student support and vital educational provision in this city, and we’ll continue to do all we can to save jobs and to preserve education in Dundee.”
Dundee City West SNP MSP Joe FitzPatrick said the level of job cuts is unacceptable.
“There still remains a lack of clarity about how the university ended up at this point and why these issues weren’t addressed sooner,” he said.
“Staff who are hearing that their jobs are at risk deserve more transparency from the university.”
Dundee-based Labour MSP Michael Marra, who worked at the university for 16 years, said: “Dundonians will be in a state of shock at the prospect of significant job losses at the most important institution in our city.
“These are the consequences of a leadership that lost control of the university’s finances.”
Financial crisis
The original £30 million deficit was revealed in November last year.
Since then, former principal Iain Gillespie quit, followed by other executives as the crisis developed.
The Scottish Government announced the university will have access to an emergency fund worth up to £15 million last month.
Graeme Dey, the Scottish Government’s higher education minister, said compulsory redundancies must only be a last resort.
“If there is a further financial ask to be made of government in relation to the immediate challenges faced by the university, then this will be carefully considered,” he said.
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