Job cuts are likely in the University of Otago's School of Physical Education amid financial struggles and falling student numbers.

Pro-vice chancellor of sciences Prof Richard Barker confirmed staff members were offered voluntary redundancies at a meeting just over a week ago, before a review of the school ``likely'' to result in staff cuts.

Prof Barker said the prospects of staff cuts came as the school struggled financially.

``The School of Physical Education is running a large financial deficit and has been for the past four years.

``Equivalent full-time student numbers have declined by more than a third in the past four years.

``This is not sustainable in the short or long term, so we have started work to identify where savings can be made.

``It's important that the school operates on a strong financial base so that it can invest in a quality student experience, underpinned by research excellence,'' he said.

No formal management of change process, or formal redundancy process, had begun, but staff cuts were likely.

``We will work closely with staff in the school as we seek ways to achieve financial viability and a sustainable future.''

It was not known yet how many voluntary redundancies would be sought.

``We are not sure at this point but if we can meet the needs of some staff through voluntary severance we see this as a constructive step.''

He added that the university was committed to the future of the school.

``From a strong financial position we expect it to continue to contribute to the research-led excellence for which the university and school is known.''

A total of 44 permanent academic and general staff work in the school.

The likely cuts come after 16 full-time equivalent jobs were cut from the humanities division due to falling student numbers and poor financial performance.

vaughan.elder@odt.co.nz