University of Dundee 'could face more job losses'

The University of Dundee is facing financial challenges

Further job losses may be needed at the University of Dundee, MSPs have been warned.

The institution's financial challenges first came to light last November.

More than 600 job losses were originally estimated to be required, but that was later revised to about 300 through the use of a voluntary redundancy scheme.

Richard Maconachie, from the Scottish Funding Council's Dundee recovery team, told Holyrood that generating income from new courses would help the university, but he believed it would also "need to restructure" going forward.

In August, it was revealed a recovery plan which included a proposal for 400 additional job cuts was rejected by the SFC.

The cash-strapped institution had suggested a further 220 voluntary redundancies and 170 compulsory redundancies.

This was in addition to the previously-announced voluntary scheme to shed jobs.

The university faces a £35m deficit for this financial year.

Mr Maconachie told MSPs: "I have not said that there are not more job losses to come."

However, he stressed the importance of ensuring any job losses were "in the right place".

He added: "That is why you need a strategy and a vision to ensure any losses are properly rationalised and justified."

Mr Maconachie said the university was looking at income generation opportunities - adding that the "strongest" option could come from new courses being offered.

Income generation

Mr Maconachie went on to say that while generating its own funds was part of the solution, he believed there would "need to be further restructuring".

He said that the Scottish Funding Council was trying to draw up a route map for the next 12 months and to get the university to agree to that.

A critical report in June into the university's financial collapse led to the resignations of its interim principal Prof Shane O'Neill and two senior members of its governing body.

The Gillies Report said university bosses and its governing body failed multiple times to identify the worsening crisis and continued to overspend instead of taking action.

The university said the report had been a "chastening experience and triggered a time for deep self-reflection".