Aberdeen University is taking “immediate steps” to address rising costs of £4.7 million, including potential job losses and a recruitment freeze.
Staff were told in a message circulated by the university that the situation facing the higher education sector is “extremely challenging”.
The institution’s costs for 2025-26 are set to climb by “at least” £4.7m in 2025-26.
It blames an increase in employer’s National Insurance contributions, last year’s pay award to staff and inflationary pressures.
As a result, university bosses are revisiting voluntary severance and enhanced retirement applications declined last year, meaning more staff could leave.
Other steps being taken include a freeze on almost all staff recruitment and a pause to staff promotions until student recruitment numbers for autumn 2025 are known.
The university already faced financial challenges in recent years due to plummeting numbers of high-paying international students and a lack of extra funding to make up the shortfall.
A previous hiring freeze introduced last year to plug a £15m shortfall saw university employees take early retirement or voluntary severance.
The institution says it is confident of reaching the financial target set by the university court of a £6.5m deficit in this current financial year.
It comes just days after lecturers at Robert Gordon University went on strike in a row over job cuts at the Garthdee campus.
Meanwhile, crisis-hit Dundee University faces up to 700 job losses prompting fears of deeper problems ahead across Scotland and the UK.
‘Hugely concerned’
North East Labour MSP Michael Marra said staff will be alarmed so soon after previous savings programmes.
“Aberdeen’s situation reflects broader sectoral challenges where the SNP government has driven Scottish universities to the brink,” he said.
“Balance sheets are now incredible vulnerable to any external shocks.”
North East Tory MP Andrew Bowie, a former graduate of the university, said it is “devastating news for students, staff and industries across Scotland”.
A university spokeswoman said: “The steps are regrettable but necessary to help us offset some of our rising costs and continue to navigate unprecedented times for our sector.”
Minister for Higher Education Graeme Dey said it will be an “anxious time” for staff and students at the university.
He added: “Universities are of course impacted by external shocks, including Brexit, inflationary pressures and the UK Government’s decision to increase National Insurance contributions and retain restrictive migration policies.”
Conversation