The University of Melbourne is planning to cut 179 jobs, mostly non-academic, after recording a $124 million deficit last year and forecasting another this year, which would be its fifth consecutive year in the red. The institution described its recent results as disappointing and unsustainable and flagged further pressure from declining international student numbers.
The University of Melbourne is planning to cut almost 180 jobs, saying its recent financial results are “disappointing and unsustainable” as it flags further pressure from declining international student numbers. Staff across eight areas have been informed of “local change proposals” in recent weeks, affecting roles in philanthropy, technology, financial planning and biomedicine.
The cuts, almost all of which affect non-academic staff, come after the university recorded a $124 million operating deficit last year and forecasts a further deficit this year. “Last year’s result is equal to a 3.7 per cent operating deficit, which is both disappointing and unsustainable,” a university spokeswoman said. “The landscape has evolved considerably over the past few years … this includes the changes affecting international students, which have put considerable financial pressure on universities across the country.”
Monash University higher education policy expert Andrew Norton said international enrolments across Australia were down about 10 per cent on 2025 figures as of August 2026. “As university revenue falls due to lower international student revenue this will inevitably cause job losses. More universities will announce cuts over the coming months,” he said.
On Tuesday, Deakin University acting vice-chancellor Susan Elliott said the university would consult later this month on a voluntary redundancy program. “It is an early measure, and one of several we are working through, to start addressing the revenue gap of around $200 to $250 million a year we expect by 2029,” she wrote in a message to staff.
National Tertiary Education Union branch member Liz Strakosch, a senior lecturer at the university, said the scale of job losses had only become apparent in recent days as management announced changes separately in affected areas. “We’ve seen quite brutal funding and budget cuts being pushed down to all areas of the university, and now we see that this is actually leading to major redundancies,” Strakosch said. She questioned why the university was making staff redundant rather than selling assets or scaling back campus plans, pointing to net assets of $8.2 billion and plans to transform the campus under its estate masterplan. The university last year paused work on its $2 billion plans for a Fishermans Bend campus, citing revenue constraints.
The university spokeswoman said it had implemented savings measures to reduce discretionary spending and unnecessary travel. The cuts come as the NTEU concludes enterprise bargaining that led to a strike and week-long teaching ban last month. Last week, a union vote passed a proposed agreement including a 3.5 per cent annual pay rise for four years, additional annual leave, and increased superannuation for casuals. Strakosch said union surveys showed ongoing academic staff working six to eight more hours weekly than contracted, and negotiations had resulted in clearer processes to prevent them being overloaded.
Analysis
Why This Matters
- The cuts signal deepening financial strain in Australia's university sector as international student numbers decline, a key revenue source.
- Staff across multiple departments face redundancy, potentially affecting university services and support for students.
- The situation may foreshadow similar job losses at other universities, as experts warn more institutions will follow.
Background
The University of Melbourne has reported operating deficits for five consecutive years. A Victorian Auditor-General's report last year found Melbourne and Federation universities were the only ones in the state to report a lower adjusted net result margin than the previous year. The federal government has tightened international student visa rules, reducing enrolments. The university had paused a $2 billion campus expansion at Fishermans Bend due to revenue constraints.
Key Perspectives
University of Melbourne: says the cuts are necessary because the financial results are “disappointing and unsustainable” and the environment has changed, including the impact of international student policy changes. It has implemented savings measures and remains committed to its academic mission.
National Tertiary Education Union (Liz Strakosch): says the scale of redundancies is “brutal” and questions why the university is not using its $8.2 billion in net assets or scaling back capital projects instead. The union has secured a new enterprise agreement with workload protections and pay rises.
Andrew Norton (Monash University higher education policy expert): says falling international student revenue will inevitably cause job losses across the sector, and more universities are likely to announce cuts.
What to Watch
- Formal consultation with affected staff at the University of Melbourne, which is still under way.
- Whether other Australian universities, including Deakin, proceed with redundancy programs in the coming months.
- The federal government's next moves on international student caps and visa policy, which directly affect university revenue.
Checked
10 claims in this story checked against 1 source: 8 supported.
Show each claim
- SupportedThe University of Melbourne is planning 179 job cuts and forecasts a fifth consecutive year in deficit.WA Today - Latest News: “The University of Melbourne is planning to axe 179 jobs after announcing “local change plans” across eight areas of the university.”
- SupportedThe cuts mostly affect non-academic staff and involve eight areas.WA Today - Latest News: “Staff across eight areas of the university have been informed of the “local change proposals” in recent weeks, with 179 jobs to go”
- SupportedDeakin will consult later this month on a voluntary redundancy program.WA Today - Latest News: “On Tuesday, Deakin University acting vice-chancellor Susan Elliott said the university would consult later this month on a voluntary redundancy program.”
- Partly supportedThe University of Melbourne described its recent results as “disappointing and unsustainable.”WA Today - Latest News: ““[Last year’s result] is equal to a 3.7 per cent operating deficit, which is both disappointing and unsustainable,” a university spokeswoman said.”
- Partly supportedThe university spokeswoman said, “Last year’s result is equal to a 3.7 per cent operating deficit, which is both disappointing and unsustainable.”WA Today - Latest News: ““[Last year’s result] is equal to a 3.7 per cent operating deficit, which is both disappointing and unsustainable,” a university spokeswoman said.”
- SupportedThe university recorded a $124 million operating deficit last year and forecasts another this year, its fifth consecutive year in the red.WA Today - Latest News: “the university recorded a $124 million operating deficit last year, and it forecasts a further operating deficit this year – the fifth consecutive year in the red.”
- SupportedThe university spokeswoman said changing international-student conditions had put considerable financial pressure on universities across the country.WA Today - Latest News: ““The landscape has evolved considerably over the past few years … this includes the changes affecting international students, which have put considerable financial pressure on universities across the country.””
- SupportedAndrew Norton said international enrolments across Australia were down about 10 per cent on 2025 figures as of August 2026.WA Today - Latest News: “Monash University higher education policy expert Andrew Norton said as of August 2026, international enrolments across Australia were down about 10 per cent on 2025 figures”
- SupportedDeakin’s expected revenue gap is around $200 million to $250 million a year by 2029.WA Today - Latest News: ““It is an early measure, and one of several we are working through, to start addressing the revenue gap of around $200 to $250 million a year we expect by 2029,””
- SupportedA union vote passed a proposed agreement including a 3.5 per cent annual pay rise for four years, additional annual leave and increased superannuation for casuals.WA Today - Latest News: “Last week, a union vote passed the proposed agreement, which includes a 3.5 per cent pay rise a year for four years, an additional two days of annual leave, and an increase in superannuation for casuals”