‘We intentionally did not opt for the cheese slicer method’

The financial prospects for TU Delft are not good. Last year, 2024, ended with a shortfall of tens of millions of euros , and 2025 also looks like it may end in the red. The shortfall this year is estimated at EUR 25 million, and TU Delft has already added funds from its reserves.

As in 2024, the faculties and departments will have to take serious economising measures. All sorts of internal measures are being taken, ranging from not automatically filling vacancies to a moratorium on hiring student assistants, delaying building maintenance, and making working lunches simpler.

The end goal: Spend EUR 79 million less

That plenty more measures need to be taken became apparent in January. The Executive Board sent all departments and faculties a letter asking for proposals (so-called ‘contour sketches’) to reduce spending by 10% on their first financial revenues. The total amounted to a reduction of EUR 79 million as of 2028.

The plans need to be ready in June, after which, in autumn, the Executive Board will decide how much everyone really will have to save. The Executive Board currently refers to this as a ‘policy-based decision’. It may turn out that one section will have to economise more than another.

Not a cheese slicer method

In the upheaval about this operation, this detail went unnoticed. Trade unions, the Student Council and the Works Council all assumed that every individual part of TU Delft would have to reduce costs by 10%. The trade unions and the Works Council asked for a ‘vision’. The Works Council asked for ‘courageous choices’ instead of the ‘cheese slicing method’.

Anyone reading the January letter understands where this qualifier comes from. It states for each section for how many millions adjustment plans need to be made. But the end of the letter says something else, namely that ‘internal reallocation will ultimately be decided on substantive grounds’. What does this mean?

‘We hope that directors and deans will think at institutional level’

Delta discussed these and other issues with Rector Magnificus and Executive Board Chair Tim van der Hagen and Vice President of Operations Marien van der Meer.

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Would any director or dean be willing to reduce costs even more so that someone else does not have to do so that much?

Van der Hagen: “We hope that directors and deans will think at the institutional level. I would be very pleased if a dean would say that they would be happy if another faculty would be able to put more resources into something that is important for society and that we reduce our costs a bit more.”

So it cannot be said if all the contour sketches that people are working so hard on now really will be rolled out?

Van der Hagen: “That would be a very policy neutral decision. I do hope that the departments and faculties are not applying the request at research group level which would mean that people in small groups would have to sit down and think about how they can save 10%. This would make no sense. It should be done thinking about the bigger picture.

It is positive to do it together though. We believe that involving people is highly important. This is why we did not opt for the model in which the Executive Board runs a cheese slicer over everything. We consciously chose to decentralise the task to the faculties and the university services, and that we look over their shoulders.”

‘Our intention is to keep as many staff members as possible’

Van der Meer: “As we are doing this with the 2028 budget in mind, we are taking three years. Furthermore, there already is an adjustment of EUR 25 million in this year’s budget. So of the EUR 79 million that we discussed, EUR 25 million is actually already in the 2025 budget. This thus gives some direction.”

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The Executive Board hopes to avoid as many dismissals as possible. How?

Van der Meer: “Our intention is to make these adjustments while keeping as many staff members as possible. What would help is to not automatically fill vacancies and to reduce outsourcing. The latter is too high and needs to be reduced.”

At 30% of the personnel costs, outsourcing is extremely high at the University Services.

Van der Meer: “There were reasons for this. The costs were mostly incurred at Finance, IT and real estate. Permanent staff could sometimes simply not be found. And the need is often for temporary work too.”

Why is outsourcing so much higher at TU Delft than at other universities?

Van der Meer: “I think we invested more in our campus strategy and in our digital strategy. But we now see that outsourcing costs are dropping. We also look carefully at the tangible assets. These involve the use of our real estate and infrastructure.”

So should the huge shortages in the CREFM budget be solved by its management?

Van der Hagen: “Well, the campus strategy is something that we do together. CREFM is preparing it and it will then be a subject of discussion with all the directors and deans.”

‘We want to take policy-based decisions’

And what about the strategic funds? How will the Executive Board save on its own expenses?

Van der Hagen: “There too we will not use the cheese slicer. We want to take policy-based decisions and look at where we can do with less and what we should definitely keep going. At the same time, we are looking for strategic partnerships and consider it important to continue investing in innovation.”

The Works Council suggested putting the plans for Campus Rotterdam on hold. Is that an option?

Van der Hagen: “We will invest in it ourselves until the end of this year, but we will not enter into any long-term financial commitments. We are now working with the Municipality of Rotterdam, Erasmus MC, the Port Authority and Erasmus University to approach the Cabinet to see if this will offer any perspectives.”

But nearly all the ministries have to economise too.

Van der Hagen: “That is up to the Central Government. We will see. There are also the province, the municipalities, and companies. We are trying to build a consortium to jointly acquire the funds. The Mayor and Aldermen of Rotterdam are in the lead as they are the requesting body.”

‘We always thought that the Central Government would be the stable factor’

So no risks for TU Delft?

Van der Hagen: “I think that we will be more resilient with Rotterdam Campus, and less dependent on the volatility of the Central Government than in Delft. We always thought that the Central Government would be the stable factor, but it is now imposing cutbacks. The plan may be a lot more stable with a large group of partners who will keep each other going. This is a bit of a lifeline for us.”

Rotterdam Campus a lifeline? How do you see that?

Van der Hagen: “If external financing is acquired, we will need people there. And if we have to reduce our activities here in Delft, the people could perhaps work there as employees of TU Delft. Rotterdam Campus could be a lifeline.”

There was to be a go/no go decision for Rotterdam Campus in the summer of 2024. This then became March 2025, and now it will not happen anymore. So does that mean it is a go?

Van der Hagen: “Given our difficult situation we need to slow down. It’s no problem. We can take one step at a time and take the time we need. So we will start small and make sure that we do not end up with no way out. Having our own branch in Rotterdam is a dot on the horizon.”

But some degree programmes are already being developed.

Van der Hagen: “That is a logical step given the convergence with Erasmus MC and Erasmus University. The fact that we collaborate so well on five research themes creates a strong foundation to operate there as TU Delft. It is the next step.

‘We want to prepare this with directors and deans, including taking difficult decisions’

It is not the case that we need to do this so badly ourselves, but society is calling for this. Governments and companies need more engineers. This will not happen in Delft because of the lack of space, but it will work in Rotterdam. Furthermore, our partners are in Rotterdam and they badly want us there.”

Back to the cutbacks. When all the contour sketches are ready, who will weigh them up?

Van der Hagen: “We want to prepare this with directors and deans, including taking the difficult decisions.  But in the end, it is up to the Executive Board to take the decision in autumn and the Supervisory Board and the representation bodies to approve it.”

Is taking such far-reaching decisions more complicated now that the Executive Board is not complete and you are both due to leave soon?

Van der Hagen: “No, the current Board is simply in charge as usual.”