7 down
Learning
institution’s
subdivision
reduced
in
size
by
25%
(3)
Learning institution’s subdivision reduced in size by 25% (3)
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The definition is at the beginning of the clue.
How the clue works
Learning institution is your definition, pointing to a university, which shortens to UNI. For the wordplay, take UNIT (a subdivision) and knock 25% off its size — that's one letter out of four gone — leaving you with UNI; note the 25% here is just describing the reduction, not a cross-reference to another clue.