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The Australian National University (ANU) in Canberra has announced major cuts to jobs and salaries as it stares down a projected $200 million deficit this year.
Vice-Chancellor Genevieve Bell said today they would be conducting a major restructure which would lead to a "smaller university".
It is not yet known who will be impacted or how many jobs could be at risk.
In an online statement, the ANU said the restructure was necessary because revenue had not kept pace with expenses.
The university recorded operating deficits of more than $400 million between 2020 and 2023.
Despite a financial plan being put in place, the university said it remained on an "unsustainable trajectory".
This year, its projected deficit of $60 million has blown out to an excess of $200 million, the university said.
To address that, it said it would slash $250 million from its operational costs by cutting spending by $150 million and salaries by $100 million.
The university said it would not be "financially sustainable" unless there was intervention.
What's going to be cut?
The university said it would announce further detail around jobs cuts when its "implementation plan" was released.
"Even at that time, a number of staff may be successful in securing redeployment options," it said in its online statement.
No hiring freeze is in place at this time.
The ANU said it would also address non-salary expenditure, such as procurement, facilities, travel and IT.
Some changes will also be made to the structure of the colleges at the university, with a new six-college structure in place from early next year.
The ANU College of Health and Medicine will be shut and several of its schools moved into the new College of Science and Medicine.
According to the online statement, axing the college will make 50 jobs redundant, including senior professors and the college dean, whose position will be vacated by October 19.
They will be re-directed to six new roles.
But a review into gender and culture at the college will continue.
ANU Vice Chancellor Professor Genevieve Bell says the university will be smaller once the restructure is complete. (ABC RN: Tegan Osborne)
'We will do less'
Professor Bell has already confirmed the restructure is "not a one-off correction" such as that experienced during the pandemic.
"We will be a smaller university, but remain distinctive, excellent, and with a strong sense of community," she said in a statement.
"We will do less but we will do it better."
Professor Bell has said the university's financial position was expected to be more sustainable by 2026.
"Like many universities globally, ANU is facing a substantial financial challenge. This is not a new challenge," she said.
The ABC understands Professor Bell briefed staff at the university this morning.
The university has declined requests to speak to the media.
Union slams job cuts
The National Tertiary Education Union described the announcement as a "kick in the guts".
NTEU ANU branch president Millan Pintos-Lopez said the union was concerned for staff members whose roles had been identified as surplus and said it would work with staff who might be impacted.
ACT division secretary Lachlan Clohesy said there was a perception among staff that the university was making "arbitrary" decisions.
"Staff are sick of these pronouncements from the Chancelry tower, with little to no consultation, which have a huge effect on people’s lives," Dr Clohesy said.
“ANU’s financial situation has not been helped by the uncertainty around international student caps, and we repeat our call for the Education Minister, Jason Clare, to implement a transition plan to make up funding shortfalls due to federal government policy changes.”