Victoria University of Wellington has seen 74 staff members opt for voluntary redundancy in the midst of financial struggles. The university is facing a projected $33 million deficit for the year, with declining student enrollment and financial sustainability concerns. To address the financial constraints, the university had identified 275 potential roles for redundancy, with plans to add 46 new positions. However, 74 individuals chose to leave during the voluntary redundancy period, achieving approximately one-third of the cost-saving target. The university is aiming to save $10 million through operational cost-cutting, retirements, and resignations.
In response to the financial challenges, Victoria University had previously put 59 courses under review, including subjects like Italian, German, Greek, Latin, and secondary school teaching. Additionally, theater and music performance courses were set to be integrated into other programs. However, following the announcement of a $12 million government fund towards their deficit over the next two years, the university has decided to place several courses, such as Midwifery, Workplace Health and Safety, Secondary Teaching, Earth Sciences, Physics, History, and the English Language Institute, on a managed pathway to achieve sustainability.
Although the voluntary redundancy numbers have provided some relief, Vice Chancellor Nic Smith mentioned that proposed job cuts are still on the table for various areas across the university. However, the scale of the proposed cuts has been reduced due to the government’s financial support and the voluntary departures. Final decisions regarding job cuts and program changes will be announced in late September. The university anticipates that the additional funding could potentially save a small but crucial number of jobs and programs.
The financial struggles faced by Victoria University have prompted broader discussions about the sustainability of the tertiary education funding model. The Tertiary Education Union has been vocal in opposing the proposed job cuts, organizing protests and campaigns. Finance Minister Grant Robertson acknowledged that while the funding injection provides significant support to the sector, individual institutions still need to take operational action to ensure sustainable funding with a diversified student base. Education Minister Jan Tinetti described the funding increase to the tertiary sector as the most significant in the past 20 years.
Victoria University is aware of the uncertainty this process creates for both staff and students. However, the university has committed to ensuring that all currently enrolled students will be able to complete their full course of study. Moving forward, the institution will undertake further consultation on financial decisions and review the tertiary education sector as a whole.
