EXCLUSIVE: The rejected Dundee University recovery plan that proposed 690 job losses.

The Courier has revealed the full details of Dundee University’s now-rejected recovery plan. The Scottish Government has vetoed Dundee University’s latest recovery plan, which included proposals for 690 redundancies.

The 105-page document outlined the institution’s “best hope” for surviving a cash crisis that has pushed it close to bankruptcy.

The document, obtained by The Courier hours before the Scottish Funding Council rejected it, outlined a timeline for additional savings and job losses.

The full plan reveals:

Insiders at the university insist that, while it is a “tough plan,” it is necessary for creating a long-term sustainable future.

Importantly, managers believe it would hasten the university’s transition away from relying on government funding to operate. The document’s cash flow projections reflect the stark reality of the institution’s current situation.

Without the immediate savings and the £52 million bailout announced by the Scottish Government, the university would lose money beginning in September.

It would be unable to pay employee salaries and other operating costs, which currently total around £1 million per day.

Further redundancies

The plan is based on a significant reduction in the “spiralling” staff costs outlined in the independent Gillies Report.

If nothing changes, approximately 64% of the university’s budget will be spent on staffing. This figure would drop to 59% in fiscal year 2025/26, 54% the following year, and 53% thereafter.

According to the plan, this will bring the university in line with other institutions in the sector.

To accomplish this, an additional 390 redundancies would be announced over the next 12 months, bringing the total reduction to 690. It states, “We would then expect to run a redundancy scheme later in the 2025-26 academic year.”

“Along with the second phase of VS [voluntary severance] scheme noted above, this will reduce salary cost by a total of £27.7m on an annualised basis, with an estimated cost of £7.4m.”

According to the plan, the “working assumption” is that approximately 20% of the lost positions will be academic, with the remainder consisting of professional services staff.

It says this is consistent with a reduction in the number of modules offered and an expected drop in student numbers this academic year – down 19% from 2022-23 figures to just over 11,400.

After accounting for unfilled vacancies, the university’s total headcount is likely to be reduced by nearly 1,000. In addition to the redundancy scheme, the university is proposing a radical restructure.

It would reduce its current eight academic schools to four faculties, resulting in fewer middle managers.

Assets marked for sale

The plan also confirms that the sale of University House, the principal’s official residence, is complete. The institution is expected to receive approximately £800,000 in November.

Several other buildings and assets are listed for sale: The plan also outlines a number of other day-to-day savings measures, such as tighter control over operating expenses. The Scottish Government effectively vetoed the recovery plan, so any implementation of the changes is unlikely.

The Scottish Funding Council has demanded a halt to the restructuring and redundancy plans proposed by management as the only way to save the institution from bankruptcy.

Instead, they issued a “name your price” ultimatum to keep the university open for the next 12 months.

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