UTS proposes to axe 209 staff next year in second phase of cost-cutting plan

Last Thursday (23 October), UTS released its Operating Model Change Proposal, which contained plans to cut 209 full-time employees.

The Community and Public Sector Union NSW and the University of Technology Sydney (UTS) will hold their third enterprise bargaining meeting tomorrow (28 October). This meeting will cover the release of phase two of the university’s Operating Sustainability Initiative, released last Thursday – this initiative is part of the university’s target of a $100 million reduction in operating expenditure starting in 2026.

In a statement, UTS vice-chancellor and president, Professor Andrew Parfitt, said: “While we are faced with making difficult decisions to ensure financial savings, we have taken a considered approach to reviewing how the university continues to best deliver on our core commitment to public education and providing research outcomes for our communities.”

HR Leader viewed UTS’ Operating Model Change Proposal, sent by a UTS staff member. As the second phase of the university’s Operating Sustainability Initiative, the Operating Model Change Proposal outlined the 209 full-time roles proposed to be cut. In this document, the university projected a cost savings of $31.8 million annually as a result of these redundancies.

As previously reported on by HR Leader, the first phase of the initiative, the Academic Change Proposal outlined plans to cut 134 full-time and casual academic staff. To reach its $100 million expenditure reduction target, the university also planned to cut $20 million in non-staff “cost management measures” across property, maintenance, procurement, travel, as well as the “removal of bonuses and incentives”.

“Where we cannot identify additional savings, the university will consider a higher level of financial risk and further constrain our immediate capital investments to preserve cash,” Parfitt said in his email to staff.

National Tertiary Education Union national president Dr Alison Barnes said: “It’s staggering to think about what’s at stake: courses, subjects and so much irreplaceable expertise. This process has been a nightmare from the start, with management’s failure to consult having disastrous effects on staff welfare.”

“This is a prime example of why governance reform announced by the federal government is needed so urgently. University leaders pocket $1 million a year while attacking the fabric of our public institutions with no accountability.”

In a statement, the university said that through this proposal, it aims to provide a “more consistent and coordinated approach”, stressing that it will ensure “more efficient processes”.

Parfitt said: “The changes proposed will help modernise our systems and structures to better support students and staff. They’re designed to help deliver our UTS 2030 Strategy, which will set us up for future success.”

The university said that part of its plan to develop more efficient processes includes consolidating services for students into one area (career advising, learning support, and peer networking), and prioritising the development of “more consistent” and “accessible digital services for students and staff”.

Barnes said: “These unjustified cuts will cause major long-term damage to UTS and the community it’s meant to serve. It’s a heartbreaking assault on a university.”