North East Scotland College (NESCol) has been handed a major funding boost that will mean "significant" cuts to full-time college places will be avoided.
But the institution still faces "another year of real terms cuts", according to Principal and Chief Executive Neil Cowie.
The college had been preparing for a deficit of £4.5m in the 2024/25 year, but that has been reduced by more than a third to £2.7m.
Mr Cowie confirmed that NESCol will aim to reduce non-staff costs through a number of initiatives. He added that the college is "exploring opportunities to reduce staff costs through an ongoing voluntary severance programme and developing revenue streams to reduce our reliance on diminishing public funding".
Around 6,000 full-time students attend NESCol across its four campuses in the North-east, but it supports around 20,000 students in total when considering part-time, distance learning and school programmes.
Read the full story in the P&J.