News from the Senior Management Team no. 40/2013

Statement from the senior management team on Aarhus University’s financial situation


Aarhus University to introduce cost-reduction measures

Aarhus University’s expenditure has continued to rise while revenues have stagnated. The university will now trim spending to address this budget deficit. At a staff briefing on 27 November, the senior management team explained why the reduction in costs is necessary.

An across-the-board cost reduction plan is under development at Aarhus University, and it will involve layoffs. According to current budget prognoses, the university will need to cut approximately DKK 200 million in costs by 2016. The precise amount will be announced after the final 2014 budget has been reviewed and approved by the Main Liaison Committee and the University Board on 18 December, after which the university’s departments and administrative divisions will be in a position to draw up their own budgets.

As Rector Brian Bech Nielsen explained in an interview, “Even though we are still at an early stage in the process, the senior management team decided to announce this now because we think it’s important for everyone to have a clear understanding of the challenges the university faces. At the same time, we want to involve the union representative and liaison committee systems in the process in due time and make sure that the process is transparent, decent and fair, even though we are conscious of the fact that this means a longer period of uncertainty for our staff.”

The spending cuts will affect the entire university, and all four main academic areas will be affected. However, the administration, which is already being streamlined, will experience the greatest cost reductions in relative terms. Hopefully, part of the necessary cost reductions can be achieved through natural wastage and by reducing the number of new hires over a shorter period. But it will not be possible to make the necessary reductions without layoffs. The spending cuts were discussed with the Board and will be carried out with the Board’s full support.

 

 



Best regards,

The Senior Management Team

The Senior Management Team publishes a newsletter every week. This newsletter includes a brief description of current activities and discussions. You can sign up for the Danish version of the newsletter at info.au.dk/medarbbreve, after which you will receive an e-mail whenever the newsletter is issued.

If you would like to subscribe to the English version of News from the Senior Management Team, please go to info.au.dk/medarbbreve/index.asp. The English version of News from the Senior Management Team is available at http://www.au.dk/en/about/uni/seniormanagement/newsletter/. You can read previous editions of News from the Senior Management Team at http://www.au.dk/en/about/uni/seniormanagement/newsletter/2013.