Jobs to go as ANU downsizes in bid to save $250 million a year

A cash-strapped Australian National University (ANU) will shrink its operation, reduce the number of colleges from seven to six and make savings of $250 million in the next 15 months, including through unspecified job cuts.

Vice-Chancellor Professor Genevieve Bell announced the reorganisation and cost-saving goals to staff on Thursday (3 October), with the changes to take place from 1 January 2025.

“The University is currently facing a substantial financial challenge,” she said.

“This is not a new challenge. Our expenses have climbed steadily since 2019, and our revenue has not kept pace, meaning we have been operating at a deficit for a number of years. Throughout 2024, we have been working to tackle this.”

Although Professor Bell did not mention it, the Federal Government’s international student caps have not helped the situation.

“This is not a one-off correction like we went through under the ANU Covid Recovery Plan in 2020,” she said.

“We will be a smaller university but remain distinctive, excellent, and with a strong sense of community. We will do less, but we will do it better.”

The University’s projected 2024 deficit of $60 million is now more than $200 million, and it will need to reduce its recurring operating costs by $250 million by 1 January 2026.

$150 million of this will impact non-salary spending, and while there is no hiring freeze, salary spending is to be permanently cut by $100 million.

The main change is the dumping of the College of Health and Medicine (CHM), which will now be absorbed into a new College of Science and Medicine, which will include the John Curtin School of Medical Research and the School of Medicine and Psychology.

Two other colleges will be renamed to reflect new or expanded areas of focus.

The ANU College of Law will be renamed the ANU College of Law, Governance and Policy (CLGP) and will take in the School of Law, the Crawford School of Public Policy, the School of Regulation and Global Governance, and the National Centre for Epidemiology and Population Health.

The ANU College of Engineering, Computing and Cybernetics will be renamed the College of Systems and Society (CSS) and include the Fenner School of Environment and Society, the Mathematical Sciences Institute and the Centre for Public Awareness of Science.

The ANU says all 42 existing schools, centres, and institutes will be retained, but eight will be moved to different colleges.

An ANU razor gang will be established to find ways to cut costs, and new controls will be introduced to reduce spending.

“We have established an Expenditure Taskforce of leaders from across the University to identify opportunities for financial savings from our operational expenses, including our buildings, travel, software licensing and procurement practices,” Professor Bell said.

“We have also introduced a series of new operational controls this year that are making us more efficient, including to our hiring practices, managing leave balances and reprioritising capital expenditure.”

Ms Bell said the ANU, like all universities, was facing headwinds in its operating environments.

“It is not going to be possible to grow our way out of persistent operating deficits by enrolling more students,” she said.

“We need to adapt to a changing policy landscape and broader economic forces by reshaping the way we do things.”

Staff will have two weeks to provide feedback on the changes, but with the announcement coming during the school holidays, many will not have the opportunity.

An implementation plan is expected three weeks after the consultation closes on 18 October.

The National Tertiary Education Union (NTEU) has labelled ANU’s plan to cut jobs as a kick in the guts for staff.

“We’re concerned for the people whose roles have been identified as surplus and will work with our members to try to save jobs,” NTEU ANU Branch President Millan Pintos-Lopez said.

“Today’s announcement is completely inconsistent with recent actions taken by ANU in relation to the College of Health and Medicine. In July 2023, ANU committed to a $16.75 million land purchase for a health precinct to house world-leading translational and research work.

“Only three weeks ago, the ANU announced the appointment of Christine Nixon to lead a review of gender equity and culture within the College. Two weeks ago, the Dean, Professor Russell Gruen, stepped down.

“Staff are right to feel let down by the chaos and confusion.”

NTEU ACT Division Secretary Dr Lachlan Clohesy said the announcement fitted a pattern of arbitrary decision-making by the Vice Chancellor, including closing campus childcare centres, setting the police on student protestors, imposing the universally unpopular Recruitment Approval Committee, and more than doubling staff and student parking fees.

“Communication and consultation has been poor throughout,” he said.

“Staff are sick of these pronouncements from the Chancelry tower, with little to no consultation, which have a huge effect on people’s lives.

“ANU’s financial situation has not been helped by the uncertainty around international student caps, and we repeat our call for the Education Minister, Jason Clare, to implement a transition plan to make up funding shortfalls due to Federal Government policy changes.”