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Wielding the axe at ANU. $25 million in job cuts!

By johnboy 26 March 2012 41

ANU’s Vice-Chancellor Ian Young has announced he’s planning to trim his budget by $40 million (or 5% of revenue):

We are not alone in having global and national financial circumstances cut into our bottom line.

Investment returns have declined in recent years. The 2012 budget indicates investment returns will be $30 million less than in 2011. This reduction directly impacts on the funds available to operate the University.

In addition, the significant capital investments made in recent years mean that depreciation costs have increased by approximately $10 million compared with 2011.

A number of these issues were discussed in my 13 December 2011 email to staff on the 2012 University recurrent budget.

These external factors, together with substantial wage increases (4.5 per cent in 2012) and services expenses (increase of $26 million in 2012) have meant that the 2012 budget has a projected surplus of only $14 million, or less than 1.5 per cent of total revenue.

The sector average is 4 per cent, a figure which the Commonwealth monitors as a measure of financial health.

We have now reached a point at which there is no option but to take bold action. If we do not act to reduce spending the University will be unable to invest in excellence, and will suffer a gradual decline in international standing and quality.

To bring things in he’s planning to cut $25 million in staff expenses and $15 million to improve business practices.

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41 Responses to
Wielding the axe at ANU. $25 million in job cuts!
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Lazy I 7:47 am 04 Apr 12

c_c said :

Those who want to read more details can find them here: http://about.anu.edu.au/strategy-reviews/financial

On the news tonight, it was said by Education Union reps that this was downsizing by stealth, and some of the language in the VC’s plans linked to above support that.

For example:

“Should the proposal as outlined here be adopted:

Engage external management consultant – 3 month study, implementation could be up to 2 years”

Implementation up to 2 years?

For something that has arisen with so little notice, seemingly in a panic, there’s a lack of urgency in that when the cuts might not be finished until after the budget period they’re trying to rain in spending for.

It would also suggest they don’t expect the ANU’s financial position to improve. I wonder when they’ll make another announcement in a future year about cuts.

I hope they packed an umbrella!

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