The university has already found $317m in “non-people” savings – it’s not enough

Vice Chancellor Ian Jacobs briefed staff yesterday on the university’s response to the COVID-19 crisis.

Better than expected: Although student numbers are hard to predict the university expects to be down between $300m and $400m this year Initial estimates for 2020, were for a loss of up to $600m.

Savings made: “through an extraordinary collective effort” the university has found “non-people” savings of $317m.

Good news now: “I am confident that we will be able to address the financial impact of COVID-19 on our 2020 finances without compulsory job losses,” Professor Jacobs says.

But not for next year: “The flow through effect of smaller student numbers in 2020 means that, even in the more optimistic scenario, we will have a significant financial challenge,” he says.

And that means job losses to cover the “financial gap” for 2021 and 2022. Attrition will provide some, a voluntary scheme others. But the vice chancellor warns, “it is unfortunately likely that there will need to be a compulsory process to achieve the total number of job reductions required.”

Professor Jacobs says he will “provide information … about the job losses required” by month end.