Melbourne University will shed 540 jobs in what it says is a bid to stay competitive, but a union has warned the move will have the opposite effect.
The university hopes to save $70 million by reducing administrative staff levels in the next 18 months.
The bulk of the savings will be directed into teaching, learning and research, it says.
The university has called the move an acknowledgment of the "intensely competitive nature of the high education sector".
But National Tertiary Education Union state secretary Colin Long said the changes would place a greater burden on academics and reduce the quality of education.
"We think it's a very foolish move at this time," Mr Long told reporters on Thursday.
"We think it will have a dreadful impact on students and the services that are provided to students and put a lot of extra work on academics."
University of Melbourne's Vice Chancellor Professor Glyn Davis said he hoped many of the cuts would be achieved through natural attrition.
The university had a turnover of 635 staff in 2013 and 580 staff the year before, Prof Davis said.
"We will focus on reducing the total number of casual and fixed-term staff where we can and offer minimal redundancies," Prof Davis said.
But Mr Long said he did not think there would be enough natural attrition to deliver the savings the university wanted.
"I think they've already said there will be forced redundancies," he said.
Melbourne university staff member and student Raena Armitage is worried how the changes will affect her job and education.
"I'm just heartbroken at the idea that I might not be able to proceed with my career the way that I hoped it was heading," Ms Armitage said.
"I'm concerned that there won't be enough jobs to go around."
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