Dundee University has laid out plans for an ‘alternative pathway’ to its financial recovery, which will see the number of jobs cut reduced by more than half that of the institution’s previous proposals. 

The revised financial recovery strategy will see the reduction of up to 300 full-time equivalent (FTE) positions, with staff taking part in a voluntary severance programme which the university said will follow Fair Work principles.

That marks a major shift from the university’s initial plans, set out only last month, which would have seen up to 632 full-time equivalent positions cut, impacting approximately 700 staff members, due to a substantial £35 million deficit.

Whereas Dundee Uni had previously not ruled out compulsory redundancies, this new plan centres on paring down non-staff costs, a reshuffling of academic units, a refreshed estates strategy, and ongoing talks with lenders to secure commercial finance.

“Since we presented in March an initial set of proposals towards a financial recovery for the University, we have continued to engage with staff, students and other stakeholders to consider alternative ways forward,” said Professor Shane O’Neill, interim principal and vice-chancellor.

“We have sought to find a financially viable way forward that would mitigate substantially the immediate need for large numbers of job losses.

“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.”

O’Neill stressed that the university’s proposals hinge on ‘significant’ additional public funding, with the management team currently engaged in discussions with the Scottish Funding Council as it looks to secure support over the next two years, although the vice-chancellor added ‘further liquidity support funding’ might be required on top.

The Scottish education minister, Jenny Gilruth praised the plan’s commitment to reducing job losses and said she was encouraged by Dundee Uni’s resolve to work alongside staff, students, union leaders and the government.

“This will remain a difficult period for staff, but this alternative plan provides a sustainable platform for the institution to build on,” said Gilruth.

Dundee Uni has already been thrown a £22 million lifeline from the Scottish Funding Council, with the government body laying out its plans last month for an independent investigation into the causes behind the apparently sudden deterioration of the university’s financial position.

Responding to the University of Dundee’s update on its alternative recovery plan, Scottish Funding Council chief executive, Francesca Osowska, said: “We recognise that the details of this alternative recovery plan are still to be finalised and will continue to work alongside the university as it manages itself back into a position of financial health. 

“Our Board approved a financial support package in March, and we will consider any request for further financial support. 

“We will also play a full part in the Regional Taskforce chaired by Sir Alan Langlands and welcome the collective commitment to support the University in ensuring its short, medium and long-term sustainability.”

That ‘rescue’ Taskforce, established after the Scottish Government stepped in, is a core element of Dundee University’s path to recovery.

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Aiming to get the university back on firm financial footing, the Taskforce held its first meeting last week, with representatives from the university, Dundee City Council, business, trades unions, student union, enterprise bodies and the Scottish Government taking part.

According to Sir Alan Langlands, the group’s discussion focused on the ‘urgent need’ to tackle Dundee University’s current financial difficulties by building on its strengths, as well as the importance of planning for the medium and long-term future.  

Following the Taskforce’s meeting, Gilruth reaffirmed the Scottish Government’s determination that Dundee University have a viable future, telling prospective students to be confident in their offers, but stopped short of committing more public funds.

“The Scottish Funding Council has already provided £22 million to the University of Dundee as support for liquidity, which is giving them the space and time to work through a plan for financial stability,” said Gilruth.

“Ministers have been clear we will carefully consider any further asks made to the Government.”