Sydney University to cut classes to recoup lost revenue

Sydney University has revealed it will slash spending, cut classes, suspend travel and implement a hiring freeze as it struggles to overcome a huge $470 million hit caused by the coronavirus shutdown.

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The University of Sydney will recoup hundreds of millions of dollars in lost revenue by slashing capital spending, staff travel and some classes.

The university plans to save $272 million by slashing capital spending by $133 million, implementing a hiring freeze to save $34 million while $19 million will be recouped by axing staff travel.

The budget black hole of $470 million was revealed in April following a 17 per cent drop in international students.

The details of how the university will try and make up the shortfall caused by the coronavirus crisis was revealed in an email sent to staff and obtained by The Daily Telegraph.

The University of Sydney is implementing major cost-cutting to recoup lost revenue resulting from the COVID-19 crisis including a 17 per cent drop in international students.

The email stated classes would be cut.

“Faculties and schools have been asked to review their casual budgets in line with their semester 1 and 2 student load, which will unfortunately impact some casual teaching staff,” it said.

“The loss of student enrolments will mean a reduction in the number of classes that are run, which will regrettably impact on some casual teaching staff, however every attempt is being made to make savings in other are as such as infrastructure and consultants and to minimise impact on staff as far as possible.”

The University will draw on its borrowing facilities and cash reserves to cover the remaining $200m to meet the $470m total revenue shortfall, the email said.

The latest annual report revealed that the university received more than $1 billion from international students alone last year, the highest income from international students of any Australian university.

Originally published as Sydney University to cut classes to recoup lost revenue