Dundee University to cut over 600 jobs as it reveals £35m deficit

Dundee University is cutting 632 jobs – about a fifth of its workforce – as it aims to get to grips with a projected £35m deficit.

Staff were informed by interim principal Shane O’Neill of the job losses as he also announced an externally-led investigation would be undertaken.

Buildings, intellection property assets and shares are also to be sold.

O’Neill warned the process “would not be easy” and moving forward the university leadership would need to “take on board all relevant lessons”.

There have been several warning signs about the state of the university’s finances in recent months, with it declaring a major crisis last year.

It blamed a drop in international students, structural underfunding of higher education and cost increases at the time.

Announcing the decision to shed hundreds of jobs on Tuesday, O’Neill said: “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. 

“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.”

Of the roles to be cut, 197 will be academic roles, 119 school-based professional services posts, and 316 directorate roles.

While voluntary redundancy is being considered, the university warned that given the scale of the cuts it is “unlikely” the compulsory redundancies would be avoided.

Higher education minister Graeme Dey said: “Whilst Dundee is an autonomous institution, it is my expectation that the university engages fully with staff and makes every effort to protect jobs.

“Compulsory redundancies should only ever be considered as a last resort, after all other cost saving measures have been fully explored.”

Other proposals in the recovery plan include creating a new academic structure, a review of teaching efficiency, and a review of leadership, executive and governance arrangements.

Labour’s Michael Marra said the “devastating news” was the consequences of “a leadership that lost control of the university’s finances”.

He said: “My thoughts are with all staff today reeling from this news. Bank finance will be required to deliver against this draft plan and we await further details of that.

“While it is clear that profligate spending decisions at the University of Dundee have set the institution apart from the wider sector, a business model based on a 22 per cent real-terms cut to Scottish student funding since 2013/14 has the potential to endanger the future of many of Scotland’s great universities.

“I urge the Scottish Government to take action so that no other city experiences what we are going through.”

Scottish Conservative skills spokesperson Miles Briggs said: “These are staggering and devastating job losses, but the University of Dundee is just the most extreme example of the crisis facing Scottish further education.

“Thanks to the SNP’s funding model and years of failure to support higher education, many of our universities now face alarming cuts and uncertain futures.”