Dublin City University (DCU) is to implement cuts across all areas of the university in a bid to avert a potential financial crisis.
In an internal memo, the university's president warns that if the cuts are not implemented there is a danger of DCU's expenditure significantly exceeding its income.
Prof Ferdinand von Prondzynski says the cuts will be implemented in academic and non-academic areas. Among the measures being taken are a recruitment freeze and cuts in non-pay costs such as expenses.
The memo - seen by The Irish Times - also says DCU will have to find new sources of revenue in future, if it is not to run large deficits.
It says there should be greater commercialisation of the university's expertise and greater efforts to recruit foreign students, who normally pay high fees to attend Irish colleges.
The president says the recruitment freeze will cover new and existing posts. In special cases, where there is an "urgent" and "strategic" need, appointments may still be made.
The memo, circulated to staff this week, says there are several reasons for the extra expenditure at DCU.
One of them is that DCU, like other universities, has to fulfil a range of new requirements in areas such as freedom of information, health and safety, equality and quality assurance.
The memo says: "Although we all have to make such appointments, the costs are not covered by additional State grants or allocations. In the case of DCU, most of the costs have become effective during the current year, and they amount to €701,000."
The president says the setting up of a new marketing and communications office has also imposed costs burdens.
He says new rules on the calculation of PRSI have also caused difficulties and the Government has declined to extend a special allowance to universities, although the Combined Heads of Irish Universities are taking up the issue.
The new PRSI costs have added about €1 million to DCU's costs, he explains. The third major cost factor at DCU, says the memo, are new buildings.
He says the equipping, heating and lighting of these new buildings are going to cost about €1 million and impose a serious burden on the university.
Speaking about the general situation, he says: "Although we have moved to put in place significant economies and efficiencies, these have not been able to offset such a major amount, and the measures set out above have proved necessary to ensure that the university continues to operate a balanced budget.
"DCU has many significant opportunities and many talented staff. I am determined to ensure that it can continue to move ahead imaginatively and decisively and that it will have the resources to do so. I am extremely grateful to all staff for their hard work and for their support in meeting these objectives," he adds.
The president is expected to discuss the situation with all staff at an open meeting shortly.