University of Dundee Faces Insolvency Amid £35 Million Deficit and Job Cuts

An independent investigation is being launched as financial mismanagement and external pressures push the university toward a cash crisis.

The University of Dundee has announced plans to cut 632 full-time equivalent posts to address a £35 million deficit, representing about 20% of its workforce.
Interim principal Professor Shane O’Neill admitted that misleading financial information previously suggested the university was close to breaking even, delaying recognition of the crisis until November 2024.
Emergency liquidity support from the Scottish Funding Council has temporarily prevented the university from running out of cash, which was projected to happen by June 2025.
An independent external investigation is being launched to determine the causes of financial mismanagement and whether information was deliberately withheld.
Broader economic factors, including restrictive UK immigration policies, inflation, and rising employer costs, have exacerbated the university’s financial challenges.