The University of Wolverhampton is to axe 250 jobs in a bid to save £8 million.

Spiralling pay costs, funding changes and stricter saving rules by the Government are being blamed.

Wolverhampton employs 2,740 staff at campuses across the city and in Walsall, Telford and Burton upon Trent.

Bosses today said the decision was “regrettable” and they would try to achieve as many voluntary redundancies as possible.

Vice-Chancellor Professor Caroline Gipps said: “This repositioning exercise is necessary so we can realise the aims and aspirations of our strategic plan. The university has sufficient reserves which ensure our financial future.

However, it is imperative that we move as quickly as possible towards a balanced budget with a percentage for investment.

“Our priority remains our students and their learning experience. Every effort will be made to minimise disruption.”

Wolverhampton is now in full consultation with unions and vowed to keep its staff and 23,000 students informed.

An official statement from the university said: “Universities in England are all facing challenging times and Wolverhampton is not alone.

“Rising pay costs, a change to funding methodologies, a cap on growth and efficiency savings required by the Government mean that we have to take steps to balance our books and maintain our ability to invest in strategic developments.

“To achieve this, and ensure a positive future for the university and its current and future students, we need to make £8 million savings and estimate around 250 posts need to be lost.”

Up to 30 jobs are also to go at Dudley College as part of cost-cutting measures.

By Elizabeth Joyce