Aalto University said in a release Monday that retrenchment talks would cover 4,100 of the institution’s 4,600 employees.
Aalto said that the goal of the salary cuts was to adjust the institutions operations to its weakening financial situation. It said that it aimed to safeguard teaching, research and innovation for the long term.
The government intends to reduce funding for the institution to the tune of 66 million euros by the end of 2018. It said that it would attempt to balance its finances by targeting financing from other sources and by cutting back on spending.
Aalto estimated that it would need to save some 37 million euros. It aimed to meet half of the savings target by reducing spending on facilities and procurement. A leaner staff would further decrease spending by some 17 million euros.
"The situation is tough for our staff, but it’s important for us to safeguard our core operations in the face of reduced financing," said Aalto University Rector Tuula Teeri said in the statement.
Earlier this autumn Helsinki University also announced deep payroll cuts – it will eliminate up to 1,200 jobs by the year 2020 - in an effort to save 86 million euros.