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A decrease in foreign student numbers has contributed to virtually wiping out all profits
The University of Plymouth has seen its profits plummet by about £24 million after seeing student numbers fall – as it made 351 staff redundant.
The university had to pay out £10.243m in redundancy payments this year, which contributed to its surplus falling to just £500,000 from £24.1m a year earlier.
The wide-scale job cuts followed 91 redundancies made at the higher education institution last year and were part of a £22m cost-saving drive.
The university’s newly published annual report said nearly all the job losses this year were part of a “targeted and mainly voluntary redundancy scheme delivered to ensure longer term financial sustainability”.
The report said the university had also been hit by a fall in the number of students – with the most significant decline being in the number of foreign students.
This was put down to visa regulations, global economic pressures and increased competition from overseas institutions.
It led to a £10.4m drop in tuition fees and education contract income, and £700,000 less from funding bodies as a result of having fewer students.
University income for 2024/25 was £269.8m – down by 3.3% compared to the previous year and “largely attributable to decreased tuition fees”.
Expenditure was up by £14.8m (5.8%) to £269.7m, and included the redundancy payments plus the impact of cost-of-living pay awards and national insurance increases, and also higher depreciation costs following investment in the estate and IT infrastructure
The freshly published annual report and financial statement document said the university had also been faced with rising costs, funding pressures and economic uncertainty.
The university said that it responded by taking “measured steps to manage the financial implications”, including “cost containment initiatives and a renewed focus on operational efficiency”.
It said: “Recognising the pressures ahead, we have implemented a series of cost reduction measures to safeguard the university’s financial health.
“These actions, though difficult, are necessary to ensure we remain agile and responsive to the evolving higher education landscape.”
The university had a new vice-chancellor during the financial year, with Prof Richard Davies taking over from Prof Dame Judith Petts.
He wasted no time in launching two “super priorities”: increasing the number of students and “growing and diversifying quality partnerships of scale” including opportunities from an expected growth in defence sector work in Plymouth.
Notable highlights of the year included the demolition of the old Brunel Building labs and the creation of a new campus park, completion of the £14.5m Fitzroy Building refurb to house Plymouth Business School, and the start of work on Peninsula Dental Social Enterprise’s new city centre dental clinic and a new home for Eyecare Excellence, both due to open next year.
Prof Davies said: “This annual report demonstrates the university’s positive impact as a powerhouse for progress in Plymouth, South West England and globally.
“We appreciate that none of this would be possible without our staff and students, together with our partners, funders, and stakeholders. And we would like to thank everyone for their efforts, engagement with, and support for the University of Plymouth.”
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