Aalto University has begun negotiations to cut up to 350 jobs, as it faces up to a fall of €66 million in government funding by the end of 2018.
This follows the announcement by Helsinki University in September that it would cut 1,200 jobs by 2020, in an effort to save €86 million.
Tuula Teeri, Aalto’s President said, “We have already previously focused our resources on research and teaching and made our operations more efficient. Regrettably, the completed savings measures are not enough on their own.”
The university plans to reduce its workforce by 17 percent, saving €17 million per annum, and also intends to look for new funding sources.
“Regardless of good results, the university's financial situation is extremely difficult,” Teeri said. “The aim is to realise a significant portion of the cost savings by reducing facility and procurement costs, but unfortunately we estimate that savings measures concerning personnel are unavoidable.
“This is a tough situation for our personnel … but our aim is that no further savings measures [will] be necessary,” added Teeri.
The Finnish economy has been shrinking for three years, hit by falling demand for the products of two of its strongest industries – paper and consumer electronics, once led by Nokia.
Spiralling wage costs have reduced competitiveness, and the euro zone debt crisis and slump in exports to Russia have also taken their toll.