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Axe to fall again at RMIT despite 355 voluntary cuts

A further 250 workers could be axed at RMIT just weeks after it accepted 355 voluntary redundancies, as the university’s revenue plummets by $175 million this year.

RMIT University's Swanston Academic Building in he CBD. Picture: David Geraghty
RMIT University's Swanston Academic Building in he CBD. Picture: David Geraghty

Cuts of 250 RMIT university staff have been proposed just weeks after 355 voluntary redundancies were accepted.

Many staff were notified on Wednesday, with the areas hardest hit to include the College of Business Law and engagement.

RMIT already accepted 355 voluntary redundancy applications just over three weeks ago, contributing $48 million in savings.

However, it’s understood the university decided even more cuts were required to make additional savings, with this week’s job losses in addition to the voluntary numbers.

The College of Business and Law was set to lose about 30 jobs, a total of 14 academic positions were to be cut along with 30 people from engagement.

Voluntary redundancies confirmed at the start of the month included the Information Technology Services with 40 jobs gone, followed by the library with almost 30 jobs and 24 people lost from the financial services group.

It’s believed more than 1000 people have lost their jobs from RMIT since April, many of them casual staff who have been let go in waves.

The university’s revenue has fallen by $175 million this year, with $200 million in savings to be found into 2021.

RMIT has put its 235-251 Bourke St property in Melbourne on the market due to financial difficulties from coronavirus.
RMIT has put its 235-251 Bourke St property in Melbourne on the market due to financial difficulties from coronavirus.

RMIT listed its Bourke St site for sale in July, citing financial difficulty from the pandemic.

Located at 235 Bourke St, Building 108, also known at The Tivoli, is set to collect more than $120 million.

An RMIT spokeswoman said no final decisions would be made on the latest job cuts until consultation periods close.

She said disruptions created by the pandemic had hit the university and “fundamentally changed our circumstances and operating environment”.

“We are continuing to look at all measures that can help RMIT’s ongoing financial sustainability, but the sheer scale of the challenges facing us means that some job losses are inevitable,” she said.

“RMIT recently accepted 355 applications for voluntary redundancy and we are currently in consultation on a number of potential change programs across the University which are with our people for feedback.

“While no final decisions will be made until consultation is completed and feedback has been considered, the proposals could see up to 250 job losses across the University.”

She said redeployment opportunities would be sought where possible and applications for voluntary separation could be made before final changes were confirmed.

“We acknowledge this is an extremely challenging and uncertain time for our community and must reiterate that these decisions are not being taken lightly,” she said.

“While we navigate this situation, we remain unconditionally focused on the wellbeing of our people.”

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ashley.argoon@news.com.au

@ashargoon

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Original URL: https://www.heraldsun.com.au/education/axe-to-fall-again-at-rmit-despite-355-voluntary-cuts/news-story/68d4775962dfcdb009ff447dcfd18864