ANU announces cuts
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The Australian National University (ANU) has unveiled significant measures to counter a $200 million deficit.
The ANU will implement cost-cutting initiatives, including job losses and salary reductions, in a bid to restore financial sustainability.
Vice-Chancellor Professor Genevieve Bell outlined the situation in a public address this week, saying; “Since 2019, our expenses have steadily climbed, and our revenue has not kept pace”.
“This means we have been operating at a deficit for a number of years.
“Current economic and policy circumstances mean that the growth strategy previously agreed by the ANU Council is no longer viable, and our current trajectory is not sustainable without structural intervention.”
ANU has faced consecutive operating deficits exceeding $400 million between 2020 and 2023, driven by escalating expenses and stagnant revenue.
Despite various financial strategies, the institution’s budget trajectory remains unsustainable, with the 2024 deficit reaching over $200 million.
In response, ANU plans to cut $250 million from its operational costs over the next 15 months.
Of this, $150 million will come from reduced spending, while $100 million will be saved through salary cuts.
The university says the measures are crucial for its long-term survival.
Key components of ANU’s strategy include a realignment of its academic structure, effective from January 1, 2025.
This will see the number of colleges reduced from seven to six. The College of Health and Medicine will be disestablished, with its departments merged into a newly formed College of Science and Medicine.
Furthermore, three existing colleges will be renamed to reflect new focus areas, as part of a broader effort to adapt to a changing economic and policy environment.
ANU intends to retain all 42 of its existing schools, centres, and institutes, although eight will be relocated to different colleges within the university.
These structural changes are expected to create a more streamlined and efficient academic framework, aligning resources with national priorities.
Professor Bell reassured staff that their health and wellbeing would be prioritised during this transition. However, she acknowledged that job losses are inevitable.
The university has set up an Expenditure Taskforce to explore further cost-saving opportunities in areas such as travel, procurement, and capital expenditure.
The restructuring, part of a broader 15-month plan aimed at returning ANU to financial sustainability by 2026, is set to include town halls and ongoing consultation with university employees.