First Minister concerned by 'very severe' University of Dundee crisis

The First Minister ha said he is concerned by the “very severe” situation facing the University of Dundee.

The University announced on Tuesday that it plans to cut over 600 full-time jobs to address a £35m deficit.

Every school and directorate within the university will undergo a “significant” restructuring resulting in a loss of around 20% of its 3,000 strong workforce.

It will also look at selling off intellectual property rights and parts of its estate.

It may have to approach the Scottish Government, the Scottish Funding Council or banks to fund redundancy payments.

North East & Tayside

More than 600 jobs to be cut at Dundee University

A total of 632 staff members are set to be made redundant with buildings and assets expected to be sold.

John Swinney said on Wednesday that as well as causing “enormous concern” for members of staff, the news could also have a “significant effect” on the Dundee and Tayside economies.

“It’s absolutely vital that we find a sustainable route forward for the University of Dundee,” he told STV News.

“It’s a previous institution within our country. It employs thousands of people and educates thousands of students, and we’ve got to secure its future.”

According to Swinney, there are ongoing discussions between the Scottish Funding Council, which acts on the government’s behalf, and the University to address the “very severe” financial issues facing the school.

“Obviously there’s significant economic implications arising from the announcements made yesterday by the University of Dundee,” Swinney said.

“I know there will be enormous concerns among members of staff about what was announced yesterday.”

However, Swinney acknowledged that the University of Dundee is not the only university in Scotland – or indeed the UK – that is struggling with finances.

Swinney said universities were operating with “complex finance models” and acknowledged that government funding is part of that.

He said it was important that the Government works closely with the Scottish Funding Council to support the financial sustainability of universities. However, he said from time to time “changes have got to be made in their operation”.

“The situation at the University of Dundee is a particularly acute example of what has got to be faced,” he told STV News.

“For that reason, the Scottish Funding Council will work closely with the University on the Government’s behalf.”