The university opened in 2007
The vice-chancellor of a university with debts of £30m has left his post.
A spokesperson for the University of Cumbria confirmed that Peter McCaffery was leaving on Wednesday.
The Venerable Peter Ballard, chairman of the board, thanked Mr McCaffery for his contribution, in particular for implementing a financial recovery plan.
The university, which opened in 2007, has blamed the economic downturn and restrictions on student intake for its continuing financial problems.
Professor Liz Beaty has been appointed acting vice chancellor.
Mr Ballard said: "In the time Peter has been with us he has made a huge contribution to developing and promoting the university both in the region and nationally."
He went on to thank Mr McCaffery for his service to the university, in particular developing and implementing the financial recovery programme.
The Ambleside campus is being mothballed and a flagship development in Carlisle has been cancelled in a bid to tackle losses of £800,000 a month.
Up to 200 jobs across the university are to be cut. A target has been set to attract 1,000 extra students by 2012.
In addition to re-organising faculties, streamlining the academic portfolio and reviewing professional services, Mr McCaffery stated that the university could be confident of meeting a savings target of £10m by 31 July.