An audit discovered higher than reported drop-out rates
The vice chancellor of London's largest university has resigned, a month after it announced plans to cut 550 jobs.
Brian Roper has left London Metropolitan University "to take up the opportunity of early retirement". He was also its chief executive.
In February the Higher Education Funding Council for England (HEFCE) ruled that the university had been "overfunded" by £15m a year since 2005.
It found that drop-out rates at the university were higher than reported.
The funding body concluded that, given the rate of "completion" by students, teaching grants would be cut.
The university responded by saying 330 staff would be asked to take compulsory or voluntary redundancy by July 2010, while some vacancies would not be filled.
It has 4,612 staff and 34,000 students on its register.
On Thursday a university spokeswoman said Mr Roper had made "a significant contribution" to the university.
She added: "Although Brian will not be leaving the university until the end of December 2009, he has stepped down from the role of vice chancellor with immediate effect."