Zarah ChoudharyThe University of Edinburgh has announced plans to reduce staff numbers and cut operating costs as part of a wider strategy to address a significant financial deficit.
The move, which is expected to save around £140m over the next 18 months, reflects growing financial pressures across the UK’s higher education sector according to the university.
Professor Sir Peter Mathieson, principal and vice-chancellor, confirmed that the institution must close a budget gap amounting to 10% of its annual turnover.
The measures will include a ‘radical’ reduction in staffing and a review of capital expenditure, including previously approved projects.
The university is also implementing five workstreams aimed at restoring financial stability by the 2026/27 financial year.
Mathieson acknowledged that the situation would be difficult for employees, but stressed that the changes are necessary to maintain the university’s standing.
Discussions with trade unions are ongoing as the institution works through the restructuring process.
The University of Edinburgh’s financial difficulties mirror broader challenges across the sector.
Mathieson cited multiple contributing factors, including years of stagnant teaching income that has failed to keep pace with rising costs, inflation, increased National Insurance contributions, and growing employment costs.
Additionally, the UK’s declining appeal as a destination for international students has exacerbated financial pressures according to the university.
Mathieson said: “Since it was founded in 1583, the University of Edinburgh has always adapted to – and helped shape – the world around it, and this moment is no different.
“Changes will be made, but we will emerge as a stronger institution that will continue to have a huge, positive influence on society for centuries yet to come.”
