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Aalto decides allocation of effects of the statutory negotiations

Total layoffs 188, personnel reductions by other means 128.

Based on the employer’s report that was just finalised, the number of Aalto personnel will decrease by a total of 316 people following the statutory employer-employee negotiations. Included in this total are 188 layoffs due to redundancies, of which 109 are teaching and research personnel and 79 service personnel. In addition, personnel will decrease by the end of 2018 through retirements, expiring fixed-term contracts and other changes. This will affect approximately 128 people, of whom 66 are teaching and research personnel and 62 service personnel. Measures relating to the redundancies will be implemented primarily in the first half of February 2016. Job retraining will be offered to those leaving their positions.

The service personnel of Aalto University was reduced previously by approximately 170 persons as a result of the reorganisation and negotiations conducted in 2014.

The aim of the negotiations was to adapt the university’s operations to the weakened economic situation in a manner that secures Aalto’s long term future for teaching, research and innovation activities. Aalto University’s annual funding will be reduced by an estimated 66 million euros by 2018 compared to the 2015 level. Altogether the university’s funding for 2016–2018 will decrease by 136 million euros.

The Aalto University negotiations concerned all personnel excluding professors. The personnel cost savings will cover around one-fourth of the public funding cuts. The aim is to offset the majority of the public funding cuts by making significant savings in facility and procurement costs, using investment returns from the endowment capital and by securing additional funding. The measures discussed during the negotiations will save 17 million euros annually in personnel costs by the end of 2018 compared to 2015.

Estimated personnel changes by the end of 2018

Total (layoffs plus other reductions)

316

affected teaching and research personnel

175

affected service personnel

141

Total layoffs

188

affected teaching and research personnel

109

affected service personnel

79

Total other reductions

(retirements, expiring fixed-term contracts etc.)

128

affected teaching and research personnel

66

affected service personnel

62

Aalto University funding cuts

Total funding cuts 2016–2018

136 MEUR

Cut in annual funding, 2018 compared to 2015

66 MEUR

Aalto University economic balancing measures

Total by the end of 2018

2018 compared to 2015

Percentage of the economic balancing required, 2016–2018

Additional funding, incl. return on investment

60 MEUR

29 MEUR

44%

Savings in facility costs

28 MEUR

14 MEUR

21%

Savings in procurements

12 MEUR

6 MEUR

9%

Personnel savings

36 MEUR

17 MEUR

26%

Total

136 MEUR

66 MEUR

100%

Further information and media contacts via Aalto University Communications: Communications Manager Anu Salmi-Savilampi, tel. +358 50 464 4585, [email protected]

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