‘Changes we have to make’: ANU forced into major restructure by $200m deficit

An elite Australian university has been forced to slash jobs because of a huge deficit, which not even enrolling more students could fix.

The Australian National University is facing a $200 million blackhole and has been forced to cut jobs, slash salaries and reign in procurement, facilities, travel and IT.

Vice-chancellor Genevieve Bell says the university is facing a substantial financial challenge, which not even enrolling more students could fix.

“Without structural intervention, the university will not be financially sustainable,” she said.

“We will do less but we will do it better.”

Expenses have climbed since 2019 while revenue has not kept pace.

The university recorded operating deficits of more than $400 million from 2020 to 2023, and has a forecast $200 million hole in the books this year.

University vice-chancellor Genevieve Bell says not even enrolling more students could fix the institute’s financial issue. Picture: NewsWire / Martin Ollman

The National Tertiary Education Union labels the plan to cut jobs as a “kick in the guts for staff”.

“Today’s announcement is completely inconsistent with recent actions taken by ANU in relation to the College of Health and Medicine,” union ANU branch President Millan Pintos-Lopez said.

“In July 2023, ANU committed to a $16.75 million land purchase for a health precinct to house world-leading translational and research work.”

The university says a major restructure is needed to become smaller and ensure its long-term sustainability and financial viability.

The ANU College of Health and Medicine has been axed. Picture: NewsWire / Martin Ollman

“We have been operating at a deficit for a number of years,” the vice-chancellor said in a statement.

“Throughout 2024 we have been working to tackle this.”

Details of which jobs will go have not been confirmed yet.

The ANU College of Health and Medicine will be shut and several of its schools moved into the new College of Science and Medicine.

The health medicine college is the only one of seven colleges to be cut.

In 2021 ANU researchers developed a low-cost, non-toxic cancer treatment using dead bacteria. ANU Research School of Biology Associate Professor, Aude Fahrer, displays a vial here. Picture: NewsWire / Gary Ramage

Eight of the university’s schools, centres, and institutes will be moved to different colleges, but all 42 schools, centres, and institutes will be retained.

University leadership have put together an expenditure taskforce to find savings, with an eye to skimming off buildings, travel, software licensing and procurement expenses.

Throughout the year capex, hiring and leave balances have been given a shake up to be more efficient.

“Like all universities, ANU is facing headwinds in its operating environments,” Professor Bell said.

The university says it ‘will do less but we will do it better’. Picture: NewsWire / Gary Ramage

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

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

“We will provide support to staff and students … This change proposal has not been taken lightly … We recognise this is hard, but these are changes we have to make.”

ANU is part of the elite Australian “Group of Eight” universities.

Long-time Coalition frontbencher Julie Bishop is the chancellor of ANU. Picture: NewsWire / Martin Ollman

The National Tertiary Education Union further says staff have been deterred in recent months by the closing of campus childcare centres, “setting the police on” student protesters, imposing the “universally unpopular” Recruitment Approval Committee, and more than doubling staff and student parking fees.

“Staff are sick of these pronouncements from the chancellery tower, with little to no consultation, which have a huge effect on people’s lives,” union ACT secretary Lachlan Clohesy said.

“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.”

Originally published as ‘Changes we have to make’: ANU forced into major restructure by $200m deficit