Dundee University has unveiled an alternative recovery plan which proposes a cut of 300 full-time equivalent roles.
The fresh pathway comes after widespread criticism of their original proposals to slash 700 jobs as part of a bid to fill a £35 million deficit.
The reduction of 300 full-time equivalent roles will be made through a voluntary redundancy scheme as opposed to compulsory lay-offs.
On Tuesday the university’s governing body endorsed the new attempt at recovery, which interim principal Professor Shane O’Neill says will require “significant” public funding over two-years.
It is understood a formal request will now be made to the government through the Scottish Funding Council.
Professor O’Neill said the university will remain attractive to students from Scotland and across the world, describing the new plan as a “significant step”.
“There are still several challenging steps to be taken in order to clear this pathway to progress,” he said.
“We also need to ensure that the steps we take do succeed in allowing us to access commercial lending, as that will be essential for long term sustainability.”
‘Significant step forwards’ for Dundee University
He added: “The proposed route forward will require significant additional public funding.
“We are engaged in discussions, through the Scottish Funding Council, as we look to secure that support over the next two years, including any related conditions and assurances. Further liquidity support funding may also be required.
“We are now working to develop the full details of the proposed pathway and on plans for implementation. This will include details of a voluntary severance scheme.
“This is a significant step towards a more sustainable future for the University and the ongoing delivery of excellent education, research and enterprise.”
In addition to the staffing reduction the university says it will also continue to make other savings.
This will include a revised estates strategy.
Education secretary Jenny Gilruth welcomed the reduction in job losses.
She said: “This will remain a difficult period for staff, but this alternative plan provides a sustainable platform for the institution to build on. I am encouraged to note that the university also intends to consult on its revised plan with its community, including with trade unions and the Strategic Advisory Taskforce.
“This government has already provided £25 million of liquidity support for the sector, and Ministers will carefully consider any ask from the Scottish Funding Council at pace.”
Dundee-based Labour MSP Michael Marra said the level of job losses remained a “hammer blow” to the city.
‘Hammer blow’
He said: “The original plan was an ill-conceived spreadsheet exercise that would have hobbled the university’s future. I will be scrutinising the full details and funding of this emerging plan over the coming days.”
Commenting on the University of Dundee update, Scottish Funding Council boss Francesca Osowska said she recognised the details were still be finalised.
She added: “Our board approved a financial support package in March and we will consider any request for further financial support.”
Dundee UCU branch co-president Melissa D’Ascenzio said: “It is a relief that University management has backed away from the brutal plans to cut up to 700 jobs.”
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