The Announcement: 163 Additional Job Cuts at Fanshawe College

Fanshawe College, one of Ontario's largest community colleges located in London, recently revealed plans to eliminate 163 more positions, bringing the total workforce reductions to 500 since spring 2025. This update came from President Peter Devlin during a staff town hall on February 17, 2026. Devlin emphasized that these cuts are directly linked to fluctuating student numbers, stating, "Our goal of 500 positions is tied directly to the number of students we have and the number of students we reject."

These latest measures follow significant previous downsizing, where the college reduced its workforce by approximately 35%, or around 337 positions initially estimated at 400. The ongoing restructuring reflects broader financial strains but occurs even as the Ontario government announced a substantial funding infusion last week.

Root Causes: Enrollment Decline Driven by International Student Caps

The primary driver behind Fanshawe's challenges is a dramatic drop in international student enrollment, triggered by federal government policies introduced in 2023. Canada imposed caps on study permits to manage housing pressures and immigration levels, leading to a nationwide plunge in foreign student arrivals—down roughly 60% in 2025 compared to 2024. At Fanshawe, international students numbered about 11,700 permit approvals in 2023—one of the highest in Ontario—but fell from 8,500 to just 4,200 this year, a decline exceeding 50%.

International students, who pay three to five times the tuition of domestic learners, have been a critical revenue source for colleges like Fanshawe, which previously boasted Canada's third-largest international cohort after Conestoga College and University Canada West. Total enrollment has shrunk from 22,000 last year to 17,200 currently, with projections dipping to 16,000 for the fall semester.

Financial Snapshot: Escalating Deficits Despite Cost-Cutting

Fanshawe's annual budget stands at $396 million, yet it faces mounting deficits. The current school year shows a $26.5 million shortfall, improved from an initial $38 million forecast thanks to prior cuts. However, projections worsen to $50.6 million for 2026-27 and $54.1 million for 2027-28.

President Devlin has highlighted Ontario colleges' underfunding, with per-student support 44% below the Canadian average, creating a structural deficit of $5,200 per domestic student. He recently petitioned for $1.5 billion annually sector-wide.

Provincial Response: $6.4 Billion Infusion and Tuition Policy Shift

In response to sector-wide cries, Ontario announced a $6.4 billion investment over four years—$1.6 billion annually—shared among universities, colleges, and Indigenous institutes. Key changes include lifting a seven-year domestic tuition freeze, allowing up to 2% annual increases for three years starting 2026-27, and overhauling the Ontario Student Assistance Program (OSAP) with an enhanced Student Access Guarantee.

Devlin welcomed the move but cautioned, "Sadly, I am unable to say that this funding means there will be no further layoffs." He awaits Fanshawe's specific allocation, expected soon, to assess its impact. This funding aims to stabilize institutions amid labor market alignment efforts but falls short of fully resolving immediate crises.

Prior Restructuring: Program Suspensions and Initial Layoffs

In April 2025, Fanshawe suspended 40 programs out of 220 following a provincial review, citing low enrollment, post-graduate work permit ineligibility, labor market demand, and financial viability. Examples include Advanced Law Enforcement, Cannabis Applied Science, Fine Art, and International Business Management.

• Advanced Communication for Professionals (ADC1)
• Chronic Disease Management (CDM1, CDM2)
• Financial Technology & Innovation (FTI1, FTI2)
• Journalism - Television and Digital News (TVN2)
• And 36 others, primarily postgraduate certificates.

These changes, coupled with 400 initial job losses, aimed to address a projected $72-95 million deficit by 2027 but have not stemmed the tide.

Impacts on Stakeholders: Staff, Students, and Community

Employees face uncertainty, with voluntary exit incentives offered in December 2025 amid voluntary packages and potential outsourcing. Students report pressure from strikes, delayed convocations, and program shifts, though domestic enrollment has risen 11% in some areas. The London community, reliant on the college's economic contributions, feels ripple effects from reduced spending and services.

Union OPSEU has tracked nearly 10,000 job losses across Ontario colleges since 2024, with over 600 programs cut province-wide.

Adaptation Strategies: Technology, AI, and Efficiency

To offset cuts, Fanshawe plans to leverage artificial intelligence (AI), technology, and outsourcing for student support. Devlin noted, "Fanshawe is in a difficult position. I suspect it will be another uncomfortable year." Focus shifts to high-demand domestic programs aligned with local labor shortages.

Explore tips for updating your academic CV if affected by these changes.

Broader Context: Ontario's Underfunded College Sector

Ontario colleges are Canada's most poorly funded per student, exacerbating vulnerabilities to federal policy shifts. Higher education analyst Ken Steele reports over 16,000 Canadian postsecondary job losses tracked into 2026. Institutions like Lambton and Algonquin face similar deficits from international enrollment drops.

Future Outlook and Opportunities in Higher Education

While challenges persist, opportunities arise in resilient sectors like skilled trades and healthcare. For those navigating job transitions, resources at AcademicJobs higher ed jobs and career advice can help. Domestic growth and funding stabilization may yield recovery by 2028.

Check Canadian academic opportunities or rate your professors for insights into programs holding strong.

Photo by Nk Ni on Unsplash

Navigating the Crisis: Actionable Advice for Stakeholders

• Faculty/Staff: Consider upskilling in AI tools; explore faculty positions elsewhere.
• Students: Verify program status; pivot to in-demand fields like nursing or IT.
• Leaders: Advocate for sustainable funding models balancing international and domestic needs.

For job seekers, free resume templates tailored to academia are available.