The University of Canterbury is asking staff to take voluntary redundancy as it grapples with a falling student roll and an uncertain deficit.
Student numbers at the university are down 13% after strong earthquakes over the past year.
Vice-Chancellor Rod Carr says next year's annual revenue will not cover operating costs.
Dr Carr is preparing a business case asking the Government for more money to help the university through the next few years.
He says forced redundancy also remains an option, depending on whether the Government does offer more funding and how many students enrol over the next few years.
The Tertiary Education Union says staff are resigned to some job losses, but have not been as involved in the decision-making process as they had hoped to be.
Spokesperson Sandra Grey says staff held a meeting to discuss the issue on Monday and want more say in the future of their institution.
However, Canterbury University says it has engaged with the staff throughout the process.
