CBS reduces administrative staff

Press release: 35 employees have been given notice of termination of employment with effect from the end of April 2011

The staff reduction was already announced on 9 December last year. A diligent process has followed, in which the management and employee representatives have conducted negotiations in order to mitigate the consequences of the announced redundancies. The management has in partnership with employee representatives succeeded in reducing the number of announced redundancies from 75 to 35 through tightening of the hiring freeze scheme and voluntary retirement agreements.

Reason for staff reduction

As a consequence of the government's turnaround plan from May 2010, the universities and other governmental institutions must implement efficiency programmes with respect to administration and support functions. The government's turnaround plan requires that the entire university area generates a revenue of DKK 125 million in 2012 and DKK 250 million in 2013.

Furthermore, CBS' budget forecast shows in a three-year perspective that the university will receive less allocations unless CBS is provided further funding.

Add to this that CBS almost tops the league table in comparison with other Danish universities when it comes to spending money on general management and administration (centrally and locally) compared to revenue. CBS' administration and management expenses as part of the total revenue has increased in the past years.

On the basis of the above, the Board and the management decided in the end of 2010 to carry out reductions in the wage bill for technical-administrative staff (TAP)for 2012, bringing it down to DKK 21 million less than in 2010. 

-To say goodbye to skilled and competent employees is a very tough decision to make, but seen in the light of CBS' overall financial position, it is necessary, says Acting President Alan Irwin.