How is The Labour government doing as Cardiff University confirms plans to cut 400 jobs?
At First Minister’s Questions (FMQs) today, the Leader of the Welsh Conservatives put to the First Minister the latest labour market statistics for Wales.
Unemployment has risen from 3.8% in June 2024 to 5.6% (a 47% increase).
The Welsh Conservatives have argued that Labour’s increase in employer national insurance contributions, their jobs tax, is the central contributing factor to these worsening figures.
Commenting, Leader of the Welsh Conservatives, Darren Millar MS said:
“Labour’s high-tax approach has created an economic downturn here in Wales.
“Since we’ve had two Labour Governments at each end of the M4, unemployment has sky-rocketed by nearly 50%. But instead of using our new Brexit freedoms to fully back initiatives like freeports and international trade deals, Labour routinely talks Wales and the UK down.
“Only the Welsh Conservatives stand ready to grasp the opportunities that our post-Brexit freedoms present to create new, high-paying jobs for Welsh people and to fix Wales for the next generation.”
Cardiff University confirms plans to cut 400 jobs
Welsh Conservative Shadow Cabinet Secretary for Education, Natasha Asghar MS, has expressed deep concern over reports that hundreds of jobs are under threat at Cardiff University.
Commenting, Natasha Asghar MS, said:
“Labour’s National Insurance hike has done nothing more than pile additional pressure on an already struggling higher education sector and with university becoming less appealing for many young people due in part to Labour’s increase of tuition fees. I fear that these concerns will be repeated across our Universities in Wales.
“Even before Labour’s NI increase, universities were already grappling with a deficit of £100m, yet no action has been taken to address this black hole. This lack of support is jeopardising the future of our higher education institutions and those who depend on them for employment and education.
“After 26 years of Labour failure in education, it’s clear that only the Welsh Conservatives have the solutions to fix these deep-rooted problems and secure a brighter future for Wales.”
Cardiff University Announces Plans to Cut 400 Jobs Amid Funding Crisis
Cardiff University has confirmed plans to cut 400 full-time jobs as part of cost-saving measures to address a significant funding shortfall.
The proposed changes could also lead to school and subject closures, as well as departmental mergers. Among the subjects set to be cut are nursing, music, and modern languages.
The Cardiff branch of the University and College Union (UCU) has strongly opposed the plans, calling them “cruel and unnecessary,” and has vowed to resist any compulsory redundancies. However, the university has stated that such measures would only be taken “if absolutely necessary.”
Financial Challenges and Restructuring
Vice-Chancellor Professor Wendy Larner described the restructuring as unavoidable, citing “declining international student applications, increasing cost pressures, and the need to adapt to survive.”
“It is no longer an option for us to continue as we are,” she said. “I know these proposals will cause a great deal of uncertainty and anxiety for those affected.”
The proposed job losses represent approximately 7% of the university’s workforce. If approved, the changes would result in “a slightly smaller university.”
Staff and Union Response
Dr. Joey Whitfield from Cardiff UCU said staff were “absolutely shell-shocked” by the scale of the cuts.
“I’ve had colleagues in tears. These cuts will damage our members, our students, the city, and Wales as a whole,” he said. The union has pledged to fight any compulsory redundancies “tooth and nail.”
Subject Closures and Mergers
In addition to job cuts, the university is planning significant restructuring, with the following subject mergers proposed:
- School of Natural Sciences – combining chemistry, earth sciences, and physics
- School of Data Science – merging computer science and mathematics
- School of Human and Social Sciences – integrating social sciences, geography, and planning
- School of Global Humanities – bringing together English, communication and philosophy, Welsh, and remaining elements of history, archaeology, and modern languages
Subjects such as ancient history and religion and theology are set to be discontinued.
Consultation and Approval Timeline
A formal consultation process is now underway and will continue for three months. Final plans are expected to be considered by the University Council in June 2025. Staff briefings began on Tuesday and will continue throughout the week.
Budget Deficit and Sector-Wide Challenges
The restructuring follows Cardiff University’s previous warning about a £30 million budget deficit, driven by rising costs and a decline in international student numbers—challenges that have affected the entire UK higher education sector.
Between June and September 2024, 155 staff took voluntary severance, with a second round closing earlier this month.
Meanwhile, university tuition fees in Wales will rise to £9,535 per year from September 2025, following a similar increase in England. However, experts warn that fee increases alone will not resolve the financial crisis facing universities.
A Wider Higher Education Crisis
Cardiff University, the largest in Wales with 32,725 students in 2023, is a member of the Russell Group, a prestigious association of 24 leading research-intensive universities in the UK.
It is not alone in facing financial difficulties. Newcastle University, another Russell Group institution, is currently balloting staff for strike action as it attempts to tackle a £35 million budget shortfall. Similar job cuts have been announced at universities across the UK.
Despite these measures, concerns remain that deeper financial instability may lie ahead for the sector.