As part of its financial recovery strategy, the university has also implemented a freeze on academic promotions for the 2025-26 academic year, disappointing some faculty members.

In response to the financial crisis, around 350 staff members at the University of Edinburgh have opted for voluntary severance, a scheme that concluded recently.

Facing a significant financial shortfall of £140 million, which represents about 10% of its annual turnover, the University of Edinburgh has announced the need for drastic budget cuts.

Professor Peter Mathieson, the university's principal, has indicated that while efforts are being made to avoid job cuts, compulsory redundancies cannot be ruled out.

The Scottish Government has made it clear that while universities maintain autonomy, they are expected to engage meaningfully with staff regarding any job-related plans and to explore all alternatives to avoid compulsory redundancies.

This voluntary severance scheme is projected to save the university approximately £18 million annually, contributing to its cost-saving efforts.

The university is currently assessing additional savings and is working on a five-year financial plan to address its budget issues, with a presentation scheduled for summer 2025.

In light of these challenges, a Government-backed task force is set to convene to discuss the future of universities in Scotland.

The situation at Edinburgh University reflects a broader crisis in Scottish higher education, as evidenced by Dundee University’s announcement of potential job cuts affecting around 700 staff due to a £35 million deficit.

UCU general secretary Jo Grady has criticized the university management for threatening jobs despite the significant savings achieved through voluntary severance, emphasizing the need to protect jobs and the institution's future.

Universities Minister Graeme Dey has acknowledged the financial pressures facing the sector, including the impact of UK immigration policies on international student recruitment and rising employer costs.

The potential for strike action looms as both the University and Colleges Union (UCU) and Unison are balloting their members over concerns regarding job security and compulsory redundancies.