Dundee University has told staff that job losses are "inevitable" as it faces a potential deficit of £30m in the next financial year.
In an all-staff email, the university's principal, Prof Iain Gillespie, said it was planning for "a significant deficit" in the wake of "an extremely challenging period" for the UK higher education sector.
He said despite a recruitment freeze and reducing operational expenditure, the university was still looking at a deficit of between £25m and £30m next year.
Academic union Dundee University College Union (DUCU) said it was "outraged" at the news after previously receiving "reassuring verbal updates."