Principal Rowland Foote was suspended earlier this week
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A South Yorkshire college which is investigating its financial management has suspended its finance director and scrapped plans to cut nearly 160 jobs.
Last month Doncaster College announced plans to axe the jobs as part of a restructuring aimed at making savings.
But an investigation was started on Wednesday after a union threatened legal action over the plans.
The college's chief accountant has taken over financial responsibilities from director Tony Myers.
Its principal Rowland Foote was suspended on Wednesday as the investigation began.
Legal threat
A statement said: "Doncaster College has abandoned the restructuring plans. It is acknowledged that savings and efficiencies still have to be made to address the operating deficit.
"Doncaster College has suspended its finance director as the investigation into the financial management of the college continues.
"The college's chief accountant will be taking over financial responsibilities with immediate effect.
"Following the earlier suspension of the college's principal, the corporation is urgently seeking to appoint an external acting principal and will endeavour to do so within the next fortnight."
The University and College Union (UCU) had threatened the college with legal action, saying it had not offered the required consultation over redundancies.
The UCU also said the college was in a financial "crisis".
Regional official Russ Escritt said: "I am delighted that the governors at Doncaster College have gone back to the drawing board, and come back with this solution.
"Getting rid of staff is never a long term solution."
The UCU said it hoped the governors would find another way to deal with the college's deficit.
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