The plan, endorsed by the University Court on 29 April, follows consultations with staff, students, and stakeholders after initial proposals were presented in March.

Professor Shane O’Neill, Interim Principal and Vice-Chancellor, said: “Since we presented in March an initial set of proposals towards a financial recovery for the University we have continued to engage with staff, students and other stakeholders to consider alternative ways forward.

“We are committed to ensuring the success of the University now and into the future. We have renewed our vision for the future so that we can continue to deliver in our key areas of academic strength in education, research and knowledge exchange. We will remain an attractive destination for students from Scotland and across the world, offering an outstanding student experience.

“We have been continuing to have positive and constructive engagement with the Scottish Funding Council and other stakeholders to develop an alternative pathway towards financial recovery. We have sought to find a financially viable way forward that would mitigate substantially the immediate need for large numbers of job losses.

“A new alternative approach was presented to the University Court this morning and they have given their endorsement to this as a revised direction of travel towards financial sustainability. The campus unions, with whom we have engaged throughout this process, have also been informed.”

Key elements of the new pathway to recovery include the following objectives:

• Reduction of up to 300 staff FTE through a voluntary severance programme, which will follow Fair Work principles
• Continue the ongoing work on a range of non-staff cost reductions
• Move to a new operating model based on the reconfiguration of our academic units and professional services, following best practice in the sector to ensure effective leadership, integration and collaboration
• Engagement with the Advisory Task Force to ensure that opportunities to bolster income generation are grasped and that the reputation of the University is enhanced
• Consolidate efficiencies through delivery of a revised estates strategy
• Working with lenders to secure access to commercial finance
• University to review at key milestones on the proposed pathway progress on cost control, student numbers and income resilience
• University to reset the vision and approach to financial recovery should further actions to address any residual structural deficit be necessary

Professor O’Neill added: “There are still several challenging steps to be taken in order to clear this pathway to progress. We also need to ensure that the steps we take do succeed in allowing us to access commercial lending, as that will be essential for long term sustainability.

“The proposed route forward will require significant additional public funding. 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.

“We are now working to develop the full details of the proposed pathway and on plans for implementation. This will include details of a voluntary severance scheme.

“We will continue to engage with staff, students and union leaders as we consult on the details of this alternative way forward and begin to implement it.

“This is a significant step towards a more sustainable future for the University and the ongoing delivery of excellent education, research and enterprise.”