NTNU faces financial crisis as Institute of Teacher Education struggles with layoffs in Norway

The situation at the Institute of Teacher Education (ILU) is challenging, as expressed by acting head Ruth Grüters. Although 19 employees applied for severance packages, this is insufficient to address the institute’s financial troubles. Dean Tine Arntzen Hestbek commented on the unfortunate likelihood of impending layoffs.

Earlier this summer, all ILU employees were offered severance packages, with the deadline for applications concluding yesterday. The university clarified that not all applications will be granted, particularly if an employee possesses essential skills critical to the institute’s operations. Employees who accept the severance package will voluntarily resign in exchange for monthly compensation from NTNU for a period of nine to 18 months. In total, 30 full-time positions must be cut from the institute.

NTNU has reported a budget deficit this year, with the severity of the financial situation varying across faculties, according to Bjørn Haugstad, Director of Organization and Infrastructure at NTNU. The financial challenges at ILU arise from a combination of factors including a decrease in student enrollment, inadequate funding for the fifth year of primary teacher education, and a general decline in university funding. Haugstad noted that government funding predictions suggest a continued downturn in the coming years, affecting the entire higher education sector.

Currently, only ILU has offered severance packages to its staff, but this could change if the financial outlook does not improve. The Faculty of Medicine and Health Sciences is also considering similar measures. Haugstad expressed optimism that financial stability could be achieved by the end of next year, as the steps being taken are aimed at fostering healthier finances in the long term. He hopes to see significant positive effects by late 2025 or early 2026.