The University of Edinburgh has announced a fresh round of voluntary redundancies as it seeks to tackle significant financial challenges.

A voluntary redundancy scheme aimed at senior staff, alongside an “enhanced” retirement scheme, has been launched in an effort to reduce costs and avoid compulsory job losses.

The move follows a previous voluntary redundancy initiative, through which around 350 staff left the institution, delivering projected savings of £24 million. However, in February principal Sir Peter Mathieson told staff that the university must cut around £140 million from spending to balance its books.

In a statement, Sir Peter said: “At Edinburgh, we have been transparent about how we are managing these pressures while strengthening our position as a world-leading, research-intensive university.

“As part of this, we have today announced a Voluntary Redundancy scheme for staff in senior grades, alongside an enhanced Retirement scheme, which will support efforts to remain financially sustainable and avoid compulsory redundancies wherever possible.

“This builds on our earlier cost-saving measures – including recruitment restraint, a pause on promotions, and a previous Voluntary Severance scheme – which have resulted in projected staff cost savings of £24m.

“We remain firmly committed to open and regular engagement with our community as we take the necessary steps to safeguard the future of our university.”

Sir Peter, whose pay package of almost £420,000 came under scrutiny at Holyrood’s education committee in June, has warned that universities across the UK are facing “serious and urgent financial challenges”. He added that the situation is placing the “stability” of the sector “under threat”.

Despite hopes that enough staff will volunteer for redundancy to avoid compulsory job cuts, the university has not ruled out such measures.

Earlier this year, members of the University and College Union staged strike action at Edinburgh, walking out on 20 June, with further action planned at the start of the academic year.

The Latest in Scottish Further Education’s Compounding Misery

The challenges at Edinburgh are mirrored across Scotland’s higher education sector.

The Scottish Government has confirmed up to £40 million in funding for the Scottish Funding Council (SFC) to support the University of Dundee’s financial recovery. The money, to be delivered over two academic years or three financial years, comes in addition to £25 million announced in February, of which Dundee received £22 million. In total, the institution could receive up to £62 million in extra support.

The funding is subject to conditions and will only be released once Dundee sets out a long-term recovery plan that leverages commercial and private investment. The intervention follows an independent review led by Professor Pamela Gillies, which found the university had failed to meet governance standards. The report prompted the resignation of interim principal Professor Shane O’Neill.

Education secretary Jenny Gilruth said: “The Scottish Government is determined to do everything we can to secure a positive and thriving future for Dundee University.” Ministers have also held early talks with the SFC about strengthening governance across the sector.

Meanwhile, Edinburgh Napier University has begun consultation on plans to reduce staffing by around 70 roles.

Recommended reading

• Dundee University Braces for Job Cuts Amid £30M Deficit
• Dundee University Pulled Back From the Brink With £22M Funding
• Hope for Dundee Uni as Rescue Taskforce Launched

A Napier spokesperson said: “Like all universities across the country, we are operating in an increasingly challenging and uncertain environment, amid rising costs and acute funding pressures. Demand for courses has also shifted significantly in recent years, meaning we need to adapt accordingly.”

The university, which described itself as “financially resilient, with no debt”, said its cost base is currently outstripping income. The spokesperson added: “Despite substantial efforts already undertaken across the university, our current cost base is outstripping our income, and we have no option but to reduce it to return to an operating surplus.

“By acting now, we can continue to focus on our priorities – to deliver impactful education and employability, a valued student experience, and innovative research. As we enter into collective consultation, we are committed to working with our trade unions to avoid or minimise the need for compulsory redundancies.”