Funding shortfalls threaten 160 jobs at LAB and LUT

LUT University and LAB University of Applied Sciences have begun extensive change negotiations that could put up to 160 jobs at risk, Yle reports. The institutions cite declining regional development funding and lower tuition revenue from international students.

LAB staff have questioned the planned cuts after the university of applied sciences recorded its strongest financial result in its history last year, according to its rector, Turo Kilpeläinen. Student numbers have grown while staffing has been reduced in earlier negotiations.

Heidi Savolainen, a shop steward and lecturer in nursing at LAB, said employees were wondering where the money had gone. The negotiations were not a complete surprise, she said, but were still shocking.

LAB estimates that up to 70 employees could be dismissed, including teachers. LUT’s negotiations cover staff in higher education services who work for both institutions, and could lead to up to 90 redundancies.

LAB says regional development funding distributed by the regions has fallen. Both institutions also collect tuition fees from students from outside the EU and European Economic Area. LUT expects to receive nearly one million euros less in tuition fees this year than last year. Its rector, Juha-Matti Saksa, said about 100 students had, so to speak, remained on the other side of the border.

LAB expects tuition fee income to be 3.5 million euros below its budget this year. The Finnish Universities of Applied Sciences Rectors’ Conference, Arene, estimated in spring 2025 that government decisions would permanently reduce basic funding for universities of applied sciences by about 54 million euros.

LAB also wants to secure the future of its Institute of Design, which teaches design, visual arts and visual communication. Its finances have been under pressure in recent years, partly because the courses require extensive in-person teaching, which is more expensive to provide.