The University of Dundee has more than halved its planned job cuts as it set out a ¡°new pathway to financial recovery¡±.

Redundancies at the under-pressure institution could now number 300, just weeks after its interim principal and vice-chancellor, Shane O¡¯Neill, told the Scottish Parliament that more than 700 staff cuts could be needed.

Dundee has been battling a ?35 million deficit and said its new plan would require ¡°significant additional public funding¡±, on top of the ?22 million of bailout money already made available by the Scottish Funding Council (SFC). It also said that it will be working with lenders to secure access to commercial finance.

The scale of the cuts at the institution has been roundly criticised by politicians and unions, saying it would take a ¡°wrecking ball¡± to the university and local economy.

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But some have cautioned against too much ministerial involvement in shaping the priorities and operations of what is an autonomous institution, risking the university being brought into the public sector.

Pressure to reduce the cuts seems to have paid off, however. O¡¯Neill said in a message to staff that ¡°we have been continuing to have positive and constructive engagement with the SFC and other stakeholders to develop an alternative pathway towards financial recovery¡±.

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¡°We have sought to find a financially viable way forward that would mitigate substantially the immediate need for large numbers of job losses,¡± he added.

The alternative plan was approved by the university¡¯s court on 29 April, and the institution will now consider work on a range of non-staff cost reductions, O¡¯Neill added.

The university will also ¡°move to a new operating model based on the reconfiguration of our academic units and professional services¡±, as well as revise its estates strategy.

The university additionally said it would be engaging with the newly formed advisory task force, which was established by the government to support the provider, ¡°to ensure that opportunities to bolster income generation are grasped and that the reputation of the university is enhanced¡±.

However, there are ¡°still several challenging steps to be taken in order to clear this pathway to progress¡±, O¡¯Neill said, adding that commercial lending will be ¡°essential¡± for its long-term sustainability.

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¡°We are engaged in discussions, through the Scottish Funding Council, as we look to secure that support over the next two years, including any related conditions and assurances. Further liquidity support funding may also be required.

¡°This is a significant step towards a more sustainable future for the university and the ongoing delivery of excellent education, research and enterprise.¡±

Melissa D¡¯Ascenzio, branch co-president at Dundee¡¯s University and College Union branch, said that the university¡¯s announcement is a ¡°relief¡±.

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¡°This backtracking is in no doubt down to the relentless pressure from UCU, from all the campus unions and the support they¡¯ve received from the city of Dundee, local communities and from across the political spectrum.

¡°Given the news of this new plan, we¡¯re urging the employer to take compulsory redundancies off the table, so we can work with the employer towards a sustainable, successful university that values its staff and students, and continues to deliver world-class teaching and research.¡±

Francesca Osowska, chief executive of the SFC, said she ¡°welcomed¡± the news, adding: ¡°We recognise that the details of this alternative recovery plan are still to be finalised and will continue to work alongside the university as it manages itself back into a position of financial health.

¡°Our board approved a financial support package in March and we will consider any request for further financial support. We will also play a full part in the regional task force chaired by Sir Alan Langlands and welcome the collective commitment to support the university in ensuring its short-, medium- and long-term sustainability.¡±

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juliette.rowsell@timeshighereducation.com