Business schools will slash 1,100 jobs over five years, while more than 800 new jobs will be cut across the industry, the Irish Times has learned.
The move, which will be announced at a meeting of the Business School Board on Wednesday, comes after the government announced last week it was reducing its investment in new business schools by a third, bringing the total number of students in Ireland’s top 100 business schools to 5,700.
The changes to the schools’ operating budgets will affect approximately 200 jobs, and a further 700 jobs, with most of those at Irish Business Schools.
The decision will also affect the salaries and pay packages of staff who have already been appointed to work at the new schools.
The reduction will affect staff from the Irish Institute of Technology (IIT), University College Cork, which are currently being paid a salary of €80,000 a year.
The number of staff currently employed at the IIT will also be reduced by nearly half, with some of the cuts expected to be made.
The new cuts will affect the positions of more than 3,000 employees across the sector.
The number of business schools in Ireland is set to increase by a quarter to around 10,000 by 2020, according to the latest available figures from the Higher Education Administration of Ireland.
The Government has been under pressure to cut its investment to the sector in recent months following a recent audit that found some schools were in dire financial straits.
Earlier this month, the Government announced it would not invest any more in new schools, citing the impact of the Brexit vote.
The IIT and University College Dublin were among those affected, with IIT students having to take redundancy payouts in March and August.
“We know there are some very tough times ahead, but the Government needs to make tough decisions,” said IIT lecturer and head of its Business School.
“The current situation has put pressure on the economy, and it is vital that we remain in the market, while we can still help our students to achieve their dreams.”
The Government will also see some of its investments in the sector be cut.
It has been previously reported that the Department of Education will be looking to cut €400m in funding to the State’s education sector in the next four years.
The Irish Independent understands that the cuts will come in the form of a reduction in the number of full-time staff employed at Irish Baccalaureate Schools.
Irish Business Schools have been under heavy pressure from the Government to cut staff numbers since the Brexit referendum.
On March 14, 2016, the State announced a total of 5,715 students had been enrolled in Irish Business School since the end of the last academic year.
The announcement came after the IIS reported a net loss of €1.1 billion in 2016/17, or roughly €1,000 per student.