The Australian National University will cut a further 215 jobs as it deals with the financial fallout of the COVID-19 pandemic.
On Wednesday, staff were advised by vice-chancellor Professor Brian Schmidt the university would attempt to save about $103 million per year from 2021.
Half of the savings are expected to come from salary expenses, through voluntary separations and redundancies.
This is on top of the 230 staff who have already accepted voluntary separations this year and a further 20 expected to leave in coming weeks.
Professor Schmidt said despite the sacrifices made in 2020, it would not make the university financially sustainable going forward.
"This is not a course of action we wanted to take, but it is our only viable option going forward if we want to remain a sustainable, stable university.
"The need for our university and its mission is clear, and we must make sure we can deliver on that mission, and not be a hollowed-out shell of our former selves."
In the Recovery Plan: Initial Change Consultation document circulated to staff, the university claims the pay rise deferral that was agreed by all staff saved 90 positions, but this saving is not enough to save all jobs.
It says every college and portfolio in the university will be required to find savings to meet their 2021 budget allocations.
It outlines further savings measures, including:
- Limiting use of consultants and contractors;
- Limiting travel (when this resumes) by maintaining alternatives modes of collaboration;
- Investing in greenhouse gas emission reductions;
- Improved procurement of goods and services
- Reducing non-salary costs such as printing and associated costs through moving to follow me printing and use of online documentation;
- Negotiating better rates for airline and travel (when business travel recommences); and
- Flexible working arrangements leading to reduced space footprint.
The plan says revenue is estimated to be $1.093 billion in 2021, given the expected size of the student cohort. University revenue will be severely impacted by the pandemic and associated travel restrictions, which is expected to restrict the numbers of international student enrolments for several years.
"With no further action to address our cost base, ANU will face a deficit of $192 million in 2021 and a continuing deficit of similar magnitude per annum in 2022 and 2023."
The university council requires the institution to have $250 million in cash reserves each year.
The plan says the Finance Minister agreed to increase ANU's debt limit to $800 million shortly after the onset of the pandemic.
"Currently, approximately $615 million of this limit has been utilised, although only $315 million of that utilised debt is currently drawn down."
The university will reduce capital works plans for 2021, focusing on works in progress and safety and compliance building work.
The ANU has begun a period of staff consultation with changes expected to start in October 2020.
