Macquarie University ‘not immune’ to COVID-19, set for $80M revenue hit
Macquarie University is set to suffer a total revenue hit of about $80 million this year as the vice-chancellor says they are ‘not immune’ to the challenges faced by the coronavirus pandemic. Find out what the university is doing in response to COVID-19.
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Macquarie University is set to suffer a revenue hit of about $80 million this year as the vice-chancellor says they are ‘not immune’ to the challenges faced by the coronavirus pandemic.
The university is expecting a teaching revenue shortfall of $40-60 million for the year and a total revenue shortage of about $80 million, according to a recent email sent to staff by vice-chancellor Bruce Dowton.
“We are by no means immune to these challenges and change is needed,” he wrote.
While the university achieved 90 per cent of its target enrolment for international students in session one, they now estimate a drop to about 25-50 per cent of target for those starting in session two.
In the email dated May 28, the vice-chancellor said any reduction in commencing international student numbers would have a “consequential pipeline impact on future years.”
After the university was hit with a $9 million shortfall at the end of last year, staff and the unions braced for the worst, yet the university has claimed it is faring better than others.
Mr Dowton further said Macquarie University was in a “better immediate position” financially than many others.
He said it was based on actions including diversifying international student recruitment, simplifying faculty structures which saw the relocation of four Human Sciences departments and a hiring freeze which were in place from late last year.
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Yet the vice-chancellor did not rule out more restructures and job losses with the university’s newly minted operating plan.
“There will be change ahead, and at times this will likely involve workplace change and restructure,” he wrote.
“Lower student numbers mean we must plan for contraction of our operating scale which we will do in an orderly way over time through the Operating Plan implementation.”
The Operating Plan 2020-24 which was announced before the pandemic and launched earlier this month outlines how the university aims to remain sustainable and adapt to future challenges.
Highlighted areas include being more student centric, enhancing the “attractiveness” of coursework and having more focused investment in research.
While the vice-chancellor said he was not available for an interview, the university has provided a statement in response to questions from The Northern District Times .
“For Macquarie University, the immediate financial impact of COVID-19 from reduced numbers of international students has been less severe than some other universities as the cohort of students unable to come or return to Australia is much smaller, and we have successfully delivered remote teaching to many of them.
“Over the past five years, Macquarie has also had a strategy of diversification of international student recruitment.
“However, the ongoing situation will continue to impact international student numbers for Session 2 and into coming years.”
In response to the “financial challenges” of COVID-19, the university will be continuing with its Operating Plan 2020-24.
When asked what motivated the decision to continue with the Operating Plan during the pandemic, the university spokesman said the plan was “was well underway before COVID-19 escalated this uncertainty.”
“And we saw the implementation of the plan as imperative at this time to allow Macquarie to adapt for a successful future.”
The university spokesman also confirmed there will be “reduced staff numbers” through “natural attrition” as part of the Operation Plan yet would not answer whether the number of expected job cuts would be increased as a direct result of the pandemic.
National Tertiary Education Union’s Macquarie University branch president Dr Nikola Balnave said the decision to push ahead with the Operating Plan meant more “associated job losses.”
“They (the university) are not hiding behind the guise of COVID-19 in order to undertake restructures but it doesn’t matter, it will happen,” Dr Balnave told The Times.
Dr Balnave, who is an associate professor, said some casual staff have already lost work in the university’s English Language Centre and International College.
“They were advised last week there was no work for them in the coming months. And they can’t tell them for how long.”
“How many more casuals will lose jobs as a result?”
She also said the university’s decision for more “blended learning” referring to a combination of online and face-to-face learning would inevitably mean more casuals out of work.
“They’re seeing the crisis as accelerating us more to blended learning. There may be job implications as a result but it will be the casuals hit first and foremost,” Dr Balnave said.