Coronavirus: Cardiff University 'could lose £110m in income'

Cardiff University could realistically lose £110m in income due to a drop in first-year enrolments, its vice chancellor has told staff in a letter.

It comes after analysis estimated first-year student numbers in Wales could drop by 21% due to coronavirus.

Prof Colin Riordan said he was in contact with unions and announced a number of measures to protect staff, including pay cuts for executive staff.

He apologised for writing to staff in "such pessimistic terms".

The report by the London Economics consultancy warned of "immense financial consequences" and predicted 1,200 of the 23,000 jobs at Welsh universities could be at risk.

"The report suggests that universities of our size and breadth of activity could see a 24% reduction in first year student enrolments," Prof Riordan wrote.

"In addition we would forgo income from residences and catering and we should also expect a reduction in returning and post-graduate student income.

"Unfortunately, this means that even the average figure given in the report of a loss of £37m is likely to be a significant understatement."

The vice chancellor added that the university had carried out its own modelling which "gives little hope that the outcome will be anything but extremely challenging".

Without any action, Prof Riordan said the university would lose £50m in income next year in a best-case scenario.

But, he added, "a realistic view" would see the university losing 20% of its income - about £110m - mainly due to fewer international student enrolments.

Prof Riordan announced a series of measures to protect jobs, including the suspension of any spending on building or equipment; a freeze on recruitment to most roles; and identifying roles for furloughing.

Prof Riordan, who earned more than £256,000 last year, said he would take a 20% voluntary pay cut, while other board members had agreed to take a 10% cut.