Australian Malcolm Gillies Resigns as V-C of City University, London. (July 24, 2009)

Professor Malcolm Gillies took over as vice-chancellor of City University, London just under two years ago in August 2007. Previously he held the post of Deputy Vice-Chancellor (Education) and then Vice-President (Development) of the Australian National University, based initially in Canberra but latterly at Yale University in New Haven. A musician and linguist by training, Professor Gillies tended his resignation yesterday effective immediately.

Apurv Bagri, the acting chair of the university council, wrote in a letter to university staff that "The council and the vice-chancellor had... differing views on matters of governance and, putting the best interests of the university first, both parties agreed this was the right decision."

However, The Guardian's Anthea Lipsett reports: "Staff believe the disagreement was over cuts and deficits, and Gillies' liberal, academic approach to running the university. Gillies is said to have focused on learning, teaching and research and the student experience rather than running the university primarily as a business."

According to Ms Lipsett City was planning to reduce staff numbers by 105. It had reported a deficit of £4m last year and the council has been asked to approve a £4m deficit for 2008-09 – partly because of funding cuts to health science courses by the NHS. On the other hand "City expects a surplus of £26m this year after the sale of two halls of residence and a spokeswoman insisted the university continues to have a strong balance sheet".

One academic told Ms Lipsett: "Everybody was completely gobsmacked when they got the email saying he was resigning over differences of governance. The council is heavily weighted towards business people and a corporate approach."

Another member of staff said: "We're in a position of having to make cuts within the budget and [Gillies'] line has been that he wanted to safeguard frontline teaching staff and learning and research, but clearly he's been totally overruled by the ruling body of the university, so that his position is untenable. This has implications for all universities because City is not as badly affected as quite a few others.

     "He's not the resigning type. He was really enjoying the job and was the best thing that's happened to our university in terms of staff morale and refocusing on students and learning that we all think is important."

City University has a current enrollment of 25,000 of whom 70% are undergraduates.

Professor Gillies (54), who graduated with a degree in classics from the Australian National University, and subsequently earned a further degree in music from the University of Cambridge, will continue as professor of music at City University until January 2010.