The neuroscience department at the Australian National University won't be scrapped and the medical school will keep its independence after mounting backlash forced the university to change its cost-saving plans.
The Eccles Institute of Neuroscience will stay as a unit in the John Curtin School of Medical Research thanks to further voluntary redundancies, an increase in revenue from newly signed contracts and money from the college's transition and research support funding.
Eccles Institute head Professor Greg Stuart said he was relieved the specialisation would continue but disappointed some staff would still lose their jobs.
"I don't think that they fully appreciated our value," Prof Stuart said.
"As a consequence of coming up with this idea to disestablish us there was huge backlash nationally and internationally. I think they underestimated that."
Neuroscience PhD student Noorya Ahmed said it was a good result as students would be able to continue their research degrees with their current supervisors.
"We do have to acknowledge that some jobs were lost in this implementation plan and that does make it bittersweet," she said.
Miss Ahmed said students were optimistic about the review process which would look at integrating the institute with the rest of the university.
Under the revised College of Health and Medicine plan, 15 positions would be cut, including one from neuroscience and seven vacant positions. The initial plan proposed to cut 22 jobs.
The ANU Medical School will be rolled into a new School of Medicine, Psychology and Health Leadership.
ANU Medical Students' Society president Gabrielle Gross said the plan was a step in the right direction as it addressed concerns over a loss of the school's independence and identity.
"It's still very, very sad to be losing those staff," she said.
"The best thing we can do is acknowledge them and the huge impact that they've had on us and future doctors in the Canberra region."
The ANU was inundated with 280 submissions about the original change management proposal.
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