Cash-strapped University of Essex says 200 jobs must go as it tries to save £29m

A cash-strapped university has announced plans to cut 200 jobs in a bid to balance its books.

The University of Essex is looking for voluntary redundancies to trim labour costs as it faces a budget shortfall of £29m this financial year.

It is the latest in a series of cutbacks in higher education and follows news of 170 impending job losses at the University of East Anglia in Norwich, which is trying to save £11m.

Essex University said its job cuts were part of a series of measures aimed at ensuring its medium-term financial future, and maintaining both research and the "excellent of the student experience".

A three-year "sustainability plan" also includes a pause on recruitment and cuts in investment and operating costs.

A spokesperson said: "This is a testing time for the higher education sector, with many other institutions facing similar or worse situations.

"Thanks to our prudent financial management over the past few years, we have weathered the storm better than many but inaction by government on the higher education funding regime and the impact of earlier political decisions affecting international students, have contributed to the current situation which is placing considerable strain on universities."

The university said it hoped the cutback would allow it to return to generating a cash surplus of 2% of income by July 2027.

It said its "commitment to excellence in education and research, and providing a transformational student experience", would remain in place.

The statement added: "We are working to minimise the impact of these changes on our staff and our students.

"We are engaging with our community throughout this process, and we will continue to provide regular updates. We are confident that by taking these steps now, we will place the university on a stronger footing for the future."

Universities said they were having to make cuts despite a rise in tuition fees announced by the government.

Education Secretary Bridget Phillipson said undergraduate tuition fees – which had been frozen at £9,250 since 2017 – would rise in line with inflation from 2025/26 to £9,535.

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