Round of layoffs at CBS averted

Skrevet af Bjørn HyldkrogJesper Snedker Adamsen, (versioning) - Foto: © Skypixel | Dreamstime.com - 30. januar 2015 - 12:450 kommentarer

The round of layoffs announced on November 19th last year has been called off. 67 voluntary retirements – 52 academic staff members (VIP) and 15 administrative staff members (TAP) – effectively means that CBS will meet the cost cutting targets before the deadline in 2017. 

On Thursday afternoon it was reported on cbs.dk and CBS’ intranet, CBSshare, that CBS is now able to avert the scheduled round of mass layoffs that was announced in November of last year when management informed employees that up to 80 staff members could potentially be forced to leave CBS.

The plan to execute an extensive round of layoffs was drafted as a consequence of the fact that CBS has to cut annual costs by DKK 60m from 2017. Cost cutting targets have now been met as CBS has managed to sign severance agreements with 67 employees; a number significantly higher than what was expected.

- It has been a very challenging process but CBS staff members have displayed collective will to solve this difficult task. Speaking on behalf of senior management I would like to thank everyone for their cooperation, especially staff members who have signed severance agreements. We are well aware that it has been a difficult period for our staff members. However, it is important that we start looking ahead, says CBS President Per Holten-Andersen.

Severance agreements primarily signed by the ‘grey gold’

The terms of the 67 severance agreements differ widely from each other; from voluntary retirement to gradual reductions in hours (special senior schemes) to transition to part-time positions etcetera. 52 agreements have been signed by academic staff members (VIP) and 15 by administrative staff members (TAP); 40 are men and 27 women; 16 agreements involve international staff members of which 6 are from non-EU countries.

Especially senior staff members have accepted offers of severance agreements as agreements have been made with 23 academic staff members and 6 administrative staff members all over the age of 65, while 12 academic staff members and 7 administrative staff members over the age of 60, but under 65, have signed. All of the affected academic staff members are either associate professors or professors.

Lecturers under pressure

The agreements made with academic staff members contribute with approximately DKK 47m in savings in 2017 and DKK 28m in 2016 plus unspecified savings in operating costs. Thus, the annual financial buffer of DKK 4m has not been used but that will change from 2017 and on.

According to the official statement from CBS management, the inevitable consequence of the significant number of voluntary retirements is increased pressure on resources in relation to lectures, which forces CBS to restructure and adjust activity levels and teaching methods within the new framework.

To what degree the severance agreements among academic staff members correspond with the initially intended distribution of cuts between departments is unclear at this point.

Severance agreements signed by academic staff members and the consequential drop in operating costs in the administrative area will effectively result in DKK 15m in savings in 2016 and 2017. In addition to severance agreements with 15 administrative staff members, a number of measures will be implemented to lower administrative operating costs.

The planned cuts of DKK 5m in campus infrastructure maintenance costs have been realized without contributing to the cuts in payroll costs.