Dundee University redundancies cut in half as part of new plan

The number of jobs to be cut at Dundee University has dropped by half as part of a new recovery plan, the institution has said.

Due to a £35 million deficit, the university had initially said it would need to shed 632 full time equivalent (FTE) positions, which would impact around 700 members of staff.

But under new proposals devised and released on Tuesday, “up to 300” FTE will now be lost through a voluntary redundancy scheme.

Previously, the university had been unable to rule out compulsory redundancies.

Under the new plan, the institution will also seek to borrow cash, as well as changing to a new operating model through the “re-configuration of our academic units and professional services”.

But on Tuesday, principal Professor Shane O’Neill said the new plan will need to be backed by “significant additional public funding”.

“A new alternative approach was presented to the university court this morning and they have given their endorsement to this as a revised direction of travel towards financial sustainability,” he said.

Trade unionists, community activists, students and staff from the University of Dundee take part in a rally and march on Tuesday | PA

Prof O’Neill said: “There are still several challenging steps to be taken in order to clear this pathway to progress.

“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.

“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.

“We will continue to engage with staff, students and union leaders as we consult on the details of this alternative way forward and begin to implement it.

“This is a significant step towards a more sustainable future for the university and the ongoing delivery of excellent education, research and enterprise.”

The announcement comes as dozens of protesters gathered outside the STUC congress in Dundee on the issue.

As a result of the revelations about the university’s financial woes, the Scottish Funding Council (SFC) launched an investigation into the cause, led by former Glasgow Caledonian University principal Professor Pamela Gillies.

Following the announcement, Scottish Lib Dem education spokesman Willie Rennie said the new plan will be “painful but not as painful as the last one”.

He added: “We now need the SNP Government to agree to the request for financial support without any further delay so that we can move forward, provide certainty for staff and students, rebuild confidence with the bank and start to recover the excellent reputation of Dundee University.

“I feel for the staff who lose their jobs under this plan through no fault of their own. We must do everything we can to support them and ensure that the independent investigation holds the previous leadership to account for their actions.

“This has been a dark episode for Dundee and we now need to move forward to better days.”