Federal cut to number of international students results in more college layoffs
Toronto’s Centennial College has announced it will be suspending programs and shedding jobs as it faces the financial consequences of a federal government cut to international student numbers and a long-term freeze on domestic tuition prices.
Craig Stephenson, the college’s president, said in a note to staff Tuesday that 49 programs, or a little more than a quarter of its offerings, will be suspended as of the summer 2025 student intake.
He also said staff reductions are inevitable. The college has put a freeze on hiring and will be looking at other costs mitigation measures, such as its use of space and its organizational structure, he said.
“Like other colleges and universities, we are adapting to federal immigration policy changes that have had significant implications for our enrolments and finances within the current provincial funding and policy context,” Dr. Stephenson said in a statement.
He described the impact on staff and programs as profound and regrettable, but that “we are doing what we must to position the college for long-term sustainability.”
It is only the latest Ontario college to announce cost-cutting measures in the wake of changes to the international student program.
Last year, the federal government announced it would cut the number of international study permits by 35 per cent in 2024, and by a further 10 per cent in 2025, in order to address strain in the housing market. The cuts have dealt a multibillion dollar blow to the postsecondary system, as well as to Canada’s international brand.
Its impact has been particularly acute in Ontario, where institutions have come to rely on international tuition to fund their operations. The provincial government has kept domestic tuition rates frozen since 2019, which sector leaders say has also strained institutional budgets.
“Our postsecondary sector is going through a rebalancing right now, and some difficult decisions are being made by our institutions to ensure their longevity,” said Dayna Smockum, director of communications for Minister of Colleges and Universities Nolan Quinn.
The Ontario government announced it would provide an additional $1.3-billion to stabilize the sector last year, which it described as the biggest investment increase in more than a decade.
At Mohawk College in Hamilton, layoff notices went out on Tuesday afternoon. It was not clear how many people were immediately affected, but the college said last year it expected to lay off more than 200 employees. It has projected a deficit of $50-million this year.
Northern College in Timmins, Ont., also announced late last week that it will be cutting staff in an effort to stem its losses. It is projecting an operating deficit of $6-million this year and $12-million next year. The college said in a news release that if it didn’t cut spending, its future would be at risk.
Sheridan College said in November that it would suspend 40 programs, as it expects revenue to drop by $112-million this fiscal year.
At Centennial College, the list of suspended programs included more than 16 in the business school and 14 in the school of communications, media, arts and design. Students currently enrolled in the suspended programs will be able to complete their studies, but new enrolments will be halted. Suspended programs may be revived in future, the college said, but may also be permanently closed.
Dr. Stephenson said in his note to staff that new international enrolments are expected to drop 43 per cent in 2024-25, a loss of nearly 5,000 international students.
This article was first reported by The Globe and Mail
