The Mounting Crisis of Retrenchments in Canadian Colleges

Canadian colleges are grappling with unprecedented financial pressures, leading to widespread layoffs and program suspensions. This turmoil stems primarily from a sharp decline in international student enrollment following federal study permit caps introduced in 2024 and tightened further in 2025 and 2026. Institutions like Sheridan College, Centennial College, and Okanagan College have announced significant cuts, signaling a broader restructuring across the postsecondary sector. These changes not only affect staff and programs but also ripple through local economies and student opportunities in provinces such as Ontario and British Columbia.

The dependency on international tuition fees, which can account for 30 to 50 percent of some colleges' revenues, has left many vulnerable. As new study permit approvals plummeted by 61 percent in 2025 compared to 2024, colleges face revenue shortfalls projected in the hundreds of millions. This situation has forced administrators to make tough decisions to ensure long-term sustainability amid stagnant domestic funding and frozen tuition increases.

🚨 Federal Study Permit Caps: Understanding the Policy Shift

The federal government's Immigration, Refugees and Citizenship Canada (IRCC) implemented a cap on study permits in January 2024, aiming to reduce new visas by over 35 percent to 485,000. This was followed by a 10 percent further cut for 2025-2026, targeting 437,000 permits, and escalating to a maximum of 408,000 in 2026, with only 155,000 for new arrivals. These measures address housing pressures and program integrity but have disproportionately impacted colleges, which rely heavily on international students for growth.

Provincial allocations exacerbate the issue; Ontario colleges bore the brunt with the largest reductions. IRCC data shows new international student arrivals dropped to 115,470 in 2025 from over 293,000 in 2024—a 61 percent decline. By late 2025, monthly arrivals were as low as 9,665 in December, compared to 29,835 the prior year. This policy whiplash has created uncertainty, with over a dozen changes since 2024 forcing constant budget revisions.

• 2024 cap: 35% reduction
• 2025: Additional 10% cut
• 2026: 50% overall reduction in new permits

Experts note that while universities have more graduate exemptions, colleges suffer as their programs attract more undergraduate and diploma-seeking internationals.

Sheridan College's Bold Restructuring

Sheridan College in Ontario announced in November 2024 the suspension of 40 programs across all five faculties, with 27 more under efficiency review. This includes 13 programs in applied science and technology, 13 in business, six in animation, arts and design, five in applied health, and three in humanities. The moves address a projected 30 percent enrollment drop, translating to a $112 million revenue loss and overall student numbers falling from 30,634 to 22,638 by 2026.

To cope, Sheridan plans workforce reductions of up to 30 percent, equating to 700 full-time equivalent positions. President Jan DePrada emphasized sustainability amid chronic underfunding—provincial per-student grants now at 16 percent versus 70 percent in the 1980s. Faculty union OPSEU Local 244 called the caps the 'straw that broke the camel's back,' warning of fewer job-ready graduates.

Current students in suspended programs can complete their studies, but new enrollments halt immediately. This restructuring aims to refocus on high-demand areas while reviewing viability.Crafting a strong academic CV could help affected faculty navigate job searches.

Centennial College Suspends Nearly 30 Percent of Offerings

In January 2025, Toronto's Centennial College suspended 49 full-time programs—about 28 percent of its 177 offerings—for the 2025-26 year. Affected areas span fashion business, tourism, construction management, journalism, and film. President Craig Stephenson cited a 43 percent drop in new international enrollments, losing nearly 5,000 students or half the prior intake, compounded by domestic challenges.

While not permanent closures, suspensions trigger reviews; some may return modified, others face elimination. Staff reductions loom as revenues plummet, part of Ontario colleges' projected $3.1 billion two-year loss. Centennial, one of Ontario's largest, highlights how caps hit public colleges hardest, with provinces allocating fewer spots to them than universities.

Students already enrolled proceed unaffected, but prospective ones must pivot. For career transitions, resources like free resume templates from AcademicJobs.com offer practical support.

Okanagan College Faces Staff and Program Reductions in BC

Okanagan College in British Columbia warned over 30 staff in arts, foundation programs, and business in early 2025, with further cuts by August including four teaching positions and closure of the Modern Languages department. Enrollment in languages dropped 50 percent over three years. Projected loss: 600-700 international students, prompting restructuring of 20 student support and exempt roles.

Faculty Association (OCFA) expressed no confidence in President Neil Fassina, criticizing opaque processes despite earlier assurances of scalability. Mitigation via early retirement incentives reduced some impacts, but more changes loom. BC colleges like Selkirk echo this, closing campuses and cutting 40+ jobs amid 73 percent international enrollment drop.

These cuts limit access to essential skills like languages, vital for regional job markets. Affected instructors might explore faculty positions elsewhere.

Photo by engin akyurt on Unsplash

Ripple Effects: Layoffs and Cuts Nationwide

Beyond the headlines, Ontario reports over 10,000 layoffs and 600+ suspended programs. Conestoga laid off 180, Mohawk 380+, Loyalist and Northern face deep cuts including staff sales and suspensions. In BC, Camosun, Selkirk closed sites; rural areas suffer most, losing training for tourism and trades.

Check Canadian academic jobs for openings amid shifts.

Financial Dependencies and Underfunding Exposed

Colleges' reliance on international fees—up to 50 percent in Ontario—stems from 30 percent provincial funding cuts since 2006 and tuition freezes. StatsCan notes universities' revenues rose, but colleges lag. Post-cap, shortfalls hit $3.1 billion in Ontario alone.

Step-by-step: 1) Caps reduce permits; 2) Enrollment falls 50-60 percent; 3) Revenue drops; 4) Costs fixed, deficits grow; 5) Layoffs/programs cut to balance. Rural colleges like Selkirk lose $9 million on $73 million budgets.

Stakeholder Perspectives: Unions, Experts, and Leaders

Faculty unions decry underfunding; OPSEU's Jack Urowitz highlights grant erosion. Selkirk's Maggie Matear calls caps a 'whiplash' penalizing responsible schools, harming rural economies. Experts like Alex Usher (HESA) note colleges' vulnerability versus universities.

• Unions: Demand funding boosts
• Presidents: Sustainability focus
• Experts: Policy needs balance

Government views caps as necessary for housing; solutions include retention pathways.

Human Impacts: Students, Faculty, and Communities

Students lose program choices, pivot careers; faculty face job loss after decades. Communities suffer: West Kootenay risks 8 percent workforce decline. Graduates in tourism/hotels hit by post-grad work restrictions.

For displaced professionals, higher ed career advice provides actionable steps like upskilling.

Adaptation Strategies and Emerging Solutions

Colleges pivot to domestic recruitment, high-demand programs (health, trades), online offerings. Voluntary retirements, admin streamlining help. Experts urge:

• Increase provincial funding
• Targeted exemptions for key fields
• Better retention via PGWP extensions
• Public-private partnerships

MacLean's analysis on adaptations.

Photo by Rose Butler on Unsplash

Future Outlook and Pathways Forward

2026 caps persist, but master's exemptions aid universities. Colleges seek resilience via diversification. Positive: Reduced overcrowding, focus on quality. Ontario pushes for fair allocations.

Explore university jobs or admin roles for stability.

Career Resources Amid the Changes

Affected by cuts? Rate My Professor for insights, higher-ed-jobs, career advice, cover letter templates. Post a job at AcademicJobs.com. Stay informed and resilient.