Edinburgh University warns staff to expect job cuts

Edinburgh University has warned staff it expects to make job cuts in response to “unsustainable” funding.

In a message to staff, principal and vice-chancellor Sir Peter Mathieson said the institution was struggling to meet its £120m-per-month running costs after a fall in student numbers and the UK government’s National Insurance rise.

Sir Peter said compulsory redundancies could be enforced if “unavoidable” after a period of “selective voluntary” job losses.

It comes after Dundee University admitted job cuts were “inevitable” and Robert Gordon University (RGU) in Aberdeen placed 135 roles at risk of redundancy due to funding issues.

Sir Peter, who was awarded a near-£20,000 pay rise earlier this year, taking his annual wage to more than £400,000, blamed “challenges around international student recruitment, increasing staff costs since the pandemic, and the unsustainable levels of funding for Scottish and other UK students” for the decision.

In his message to staff, he said the university’s “outgoings were consistently higher than its income,” adding it would need to take a “series of actions” in order to redress the balance.

“Throughout this year, I have been frank about the severe financial challenges our university and the sector are facing,” he wrote.

“The university costs £120m each month to run... our outgoings are consistently higher than our income.

“In response to this situation and recent developments with regards to National Insurance, we have concluded that we need to take a series of actions, which will include selective voluntary and, if unavoidable, compulsory redundancies.”

Sir Peter added: "I don’t underestimate how unsettling this news will be, however, it is important that I am honest about the scale of the challenge we have and transparent about the actions we need to take to address it.”

The university is one of Scotland’s oldest having been founded in 1583 and boasts links to 20 Nobel Prize laureates among its alumni alongside current First Minister John Swinney and former Prime Minister Gordon Brown.

Sir Peter told staff in the summer that the university “would reduce spending in all areas” due to funding issues.

He was awarded a 5% pay increase months before that.

Last week, Dundee University told staff it would likely cut jobs amid fears over a £30m deficit next year.

Meanwhile, RGU, which already lost 130 staff to voluntary redundancy earlier this year, said it would put a further 135 at risk of redundancy in a bid to “ensure the long-term financial sustainability” of the institution.