Huge job cuts announcement ‘imminent’ at Cardiff University

Martin Shipton

Staff at Cardiff University fear huge job cuts are about to be announced by a senior management team that has already spoken of an “immediate existential crisis”.

Briefings are due to be held on Tuesday January 28 at which details of a major restructuring of schools within the university are expected to be announced.

Speculation has been rife in advance of the briefings, with the suggestion that up to 400 jobs could go and whole departments shut down. Two departments said to be at risk are music and nursing.

Briefings 

Last week members of the University and College Union (UCU) who work at Cardiff University received an email from their branch of the union which stated: “Members have made us aware of many schools being invited at short notice to briefings on the Academic Futures project’ on Tuesday. Most emails from heads of schools have included the ominous line that to be called to these meetings will induce anxiety and a link to a support line. Some meetings seem to have been scheduled at the same time and place as other schools.

“The panicky urgency of these last minute invitations is poor, feels calculated, and is naturally extremely stress inducing. Our solidarity to all of you.

“The branch has also been invited to a briefing on Tuesday. Unfortunately we have not been given any additional information about what these meetings will involve, although invites might indicate upcoming ‘formal consultation’ — language that could indicate redundancies, even though we have had no communication from university management (formal or informal) regarding redundancies.

“We understand this is a difficult time for many members. It is vital that we work together as a branch to respond to any proposals and we will continue to organise member meetings to discuss strategy. The exec is committed to working hard but we need all members to play their part.

“We will be balloting soon on strike action in the coming weeks ,,, To reiterate, it remains our policy to strongly oppose compulsory redundancies. The branch is in dispute over UEB [University Executive Board] and the Vice Chancellor’s failure to rule them out. This is why we are balloting on industrial action and this is why a strong strike mandate will be vital.”

‘Existential crisis’

Earlier this month the UCU branch sent another message to members which said: “The position being communicated by Cardiff University senior leadership is that there is an existential crisis in the UK’s university sector and therefore there is an immediate existential crisis for Cardiff University because the accounts show that the university is running with an operational deficit of approximately £30m. Various statements have been made by UEB members about the financial position, such as: ‘We only have four months’ money in reserve to keep the institution running [and] the university could become insolvent in a couple of years’ time if we do nothing.’

“We believe the reality is somewhat different, and that this recent narrative is the result of self-imposed over-ambitious targets and restrictions on how to spend available reserves. The statement regarding having reserves only sufficient for four months relates to an extreme emergency scenario when all income ceases. Three months of reserves would be adequate for the sector and is the generally expected level cited by the Charity Commission.

“No one is denying that we need to change and adapt – indeed we have been campaigning for many changes and improvements to this institution – but panicky precipitous action that depresses and undermines staff productivity is not the way to do this.”

Financial reserves

The email went on to state that Cardiff University has a larger financial reserve than almost all of the other Russell Group universities. At the beginning of this academic year, almost £188m of a total £426m of reserves were available and could be used to address the current problems, should the University Council agree.

“So whatever has been stated, the branch believes there is no immediate existential crisis for Cardiff University 2025-2027.

“While we understand that some of the institution’s cash reserve is allocated and caution is needed in managing the reserves as a whole, the restrictions on how Cardiff University uses a major proportion of the reserve funds, particularly the remaining bond money, are entirely self-imposed.

“The key matter concerning UEB and University Council is the operating deficit, which we agree does need to be addressed within the medium term (1-3 years). Cardiff University is currently reporting a £31m operational deficit for the academic year of 2024/25 and has set itself a target of reaching an operating surplus of between £23m and £35m for the next three academic years. While it makes sense to develop a strategy to turn a deficit into surplus, the branch’s position is that Cardiff University does not need to turn an operating deficit of £31m into an operational surplus of £23m in just one year at the expense of staff and the ensuing impact on staff morale and productivity.

“It would be entirely appropriate, for example, to set a target to break even in the next academic year and then incrementally build the surplus in subsequent years. The scale and pace of Cardiff University’s proposed transformation of its operating finances is unmatched across the sector, even for universities in much worse financial positions.

“In order to achieve this rapid transformation in profitability, Cardiff University is self-imposing the delivery of an operating surplus on adjusted income of 12% and this is where things get particularly interesting. At some stage in the past, it was decided that the target operating surplus before (i) interest paid out and (ii) depreciation (technically termed EBIDA) should be 12% of income.

“This is a figure that came from a business context and may have made sense while Cardiff University was building capital. In normal times or for businesses or organisations with an entirely commercial ethos, this level of target can still make sense. However, Cardiff University has charitable objectives and should be run for the public good, advancing knowledge and education through teaching and research, not to generate profit. Healthy finances are there only to ensure that the institution can fulfil its objectives. Cardiff University currently has more reserves than it seems to know what to do with. Storing up more cash than needed does not fit with the charitable objectives of the institution.”

Compulsory redundancies

However, in a meeting last November university management negotiators refused to take off the table compulsory redundancies for 2025. As a result the UCU wrote to the Vice Chancellor, Professor Wendy Larner, declaring a formal trade dispute.

One union member who didn’t wish to be named told Nation.Cymru: “We are terrified, to be honest. The university undertook a financial analysis of all the schools, using a traffic light system. It’s those that were placed in the red category that are most frightened. We’ve seen what has happened elsewhere. Newcastle University, which is also a member of the [elite] Russell Group, recently announced plans that entail 300 job cuts.”

Another UCU member said: “These plans are being devised by a tiny elite, without consultation with the wider university community. The implications are extremely serious for the university, which is the only Russell Group university in Wales, and for Wales itself.”

One of the reasons given for the university’s supposed financial plight is that there has been a drop in revenue from overseas student fees, partly because of Brexit and partly because of tighter immigration restrictions introduced by the previous Tory government and continued by Labour.

A Cardiff University spokesperson said: “I’m afraid we do not comment on speculation and/or anonymous claims.

“If any changes are proposed, then our staff and students will be first to be informed. We will not be offering further comment, at this stage.”