The Institute of Technology in Tralee is "facing a financial challenge", according to the college's president.
A report by the Higher Education Authority has said ITT is over-staffed and facing cashflow issues.
Currently around 3,500 students attend ITT, which has two campuses in Co Kerry and employs 350 staff.
The report by Deloitte found that a decline in student numbers has left the college over-staffed and recommends the introduction of a voluntary redundancy scheme.
Speaking on RTÉ's Drivetime, Dr Oliver Murphy said the highest deficit the college ran in one year was €2.5m, adding this has been reduced to €1.5m.
He said ITT submitted a plan to the HEA during the 2016/17 academic year outlining plans to reduce this deficit by reducing costs and increasing revenues.
Dr Murphy said there has been a focus on increasing the number of people enrolling in part-time and lifelong learning courses in order to ensure lecturer are not under-timetabled.
He said there has been a 77% increase in the number of students enrolling in lifelong learning courses in recent years.
Dr Murphy added that a HEA recommendation from 2016 to look at voluntary redundancies across the sector is something they will look at "when it comes on board".
