Coventry University will make nearly £100m in cuts over the next two years.
The university's annual report said income for this financial year would be £85m less than forecast.
It added about £40m of savings would be needed in 23/24, with a further £55m in cuts expected in 24/25.
Asked if the move could spark job losses, a university spokesperson said it had significant reserves and assets but "difficult decisions" would have to be made.
One employee, who asked not to be named, told BBC News he was concerned about cuts to jobs and terms and conditions as a result of the anticipated savings.
He believed management had overseen a lack of planning and put unrealistic targets in place, adding an £85m shortfall does not just "spring up".
"I’m not seeing anybody ask - how did it get to this?" the staff member said.
In its annual report the university said its revenue had grown 10% to about £500m in the financial year ending July 2023., external
Bosses added rising costs had led to a small deficit of £2.4m, down from £32.9m the year before.
However, rising inflation means the deficit will increase again this year, with income for the year to July 2024 expected to be about £85m less than budgeted.
