Aoraki job cuts possible

Job cuts at Aoraki Polytechnic's Dunedin campus are a possibility as the polytechnic faces an expected loss of $1.6 million this year.

Acting chief executive Alex Cabrera also confirmed yesterday the polytechnic was considering collaborating with Otago Polytechnic as part of a review of its business model.

An agenda to be tabled at the polytechnic's council meeting today showed the institution was forecasting an operating loss of $1.654 million for the year, which was more than double the $790,000 loss it budgeted for at the start of the year.

As of the end of May, the polytechnic has lost $1.373 million.

The drop in student numbers was also expected to be worse than initially feared, with 1497 equivalent fulltime students (EFTS) expected to enrol this year, compared to an initial budget of 1773.

As of the end of May there were 1112 EFTS enrolled at the polytechnic, down on an initial budget of 1223.

This comes after the polytechnic, which has its main campus in Timaru and campuses in Ashburton, Oamaru, Christchurch and Dunedin, has encountered difficulties in recent years, and had a $1.6 million deficit in 2011.

In the wake of these difficulties, the polytechnic was reviewing its business model, and Mr Cabrera said redundancies were a possible outcome, including at its Dunedin campus, which has 16 full-time equivalent staff and about 200 EFTS.

The review also included the option of collaborating ''with one or multiple education providers'', which could include Otago Polytechnic.

''I have met with Otago Polytechnic to explore opportunities for collaboration and am encouraged by the discussions we have had,'' he said.

It was too early to say what form any collaboration might take, he said.

Aoraki was also considering forming a ''strategic alliance'' with Christchurch Polytechnic Institute of Technology.

Earlier this week, Mr Cabrera said Aoraki Polytechnic remained committed to ''all of its campuses'', including Dunedin, but it was too early to say how it could be affected by the review.

- vaughan.elder@odt.co.nz

 

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