The Latest Announcement Shakes Fanshawe College

In a recent town hall meeting with staff, Fanshawe College President Peter Devlin delivered sobering news: the institution plans to eliminate an additional 163 positions, pushing the total job reductions to 500 since last spring. This development comes just days after the Ontario government unveiled a substantial funding package aimed at stabilizing the postsecondary sector. Despite the optimism surrounding the provincial investment, Devlin emphasized that these measures alone cannot fully offset the college's pressing financial challenges.

Fanshawe College, located in London, Ontario, has long been a cornerstone of applied education and workforce training in the region. Serving over 17,000 students currently—down significantly from previous highs—the college offers a wide array of diploma, degree, and certificate programs tailored to local industry needs. The ongoing staff reductions underscore a deeper crisis gripping not just Fanshawe but many Ontario colleges, highlighting vulnerabilities exposed by rapid shifts in enrollment patterns.

Roots of the Crisis: Federal International Student Cap

The primary catalyst for Fanshawe's troubles traces back to the Government of Canada's 2024 policy introducing a cap on international student study permits. Aimed at addressing housing pressures and ensuring sustainable growth, the cap limited new permits to 360,000 for 2024, with further reductions planned. For colleges like Fanshawe, which relied heavily on international tuition—often three to five times higher than domestic fees—this policy triggered an enrollment cliff.

Step by step, the impact unfolded: First, application volumes plummeted as prospective students from India, China, and other key markets faced stricter approval processes. Second, existing pathways like post-graduation work permits tightened, deterring enrollments. Third, colleges conducted mandatory program reviews, leading to suspensions. At Fanshawe, international student numbers halved from over 8,500 to 4,200 within a year, slashing revenue by tens of millions while fixed costs remained.

This is not isolated to Fanshawe. Neighboring Conestoga College, another international student powerhouse, issued hundreds of layoff notices to faculty and support staff in late 2025, suspending dozens of programs. Across Ontario, the sector faces a projected loss of thousands of jobs, prompting urgent calls for federal-provincial coordination.

Enrollment Decline and Program Shake-Up

Fanshawe's full-time enrollment has tumbled from 22,000 students last year to 17,200 today, with projections dipping to 16,000 for the upcoming fall term. This 36 percent drop over two years forced a comprehensive program audit, resulting in the permanent suspension of 40 out of 220 offerings. Affected areas include media production, broadcasting radio, journalism (television and digital), and certain fine arts diplomas, shifting some to shorter one-year formats.

Students now face fewer choices, particularly in creative and niche trades programs, while rejected applicants—tens of thousands annually—turn elsewhere or abandon postsecondary plans. For domestic learners, this means heightened competition for spots in high-demand fields like health care, skilled trades, and advanced manufacturing, where Fanshawe traditionally excels.

• Key suspended programs: Broadcasting Radio, Media Production, Television Journalism
• Enrollment stats: 22,000 (prior year) → 17,200 (current) → 16,000 (projected fall)
• International drop: 8,500+ → 4,200 (>50% decline)

The ripple effects extend to student services, with larger class sizes and strained resources potentially impacting educational quality.

Financial Deep Dive: Deficits and Structural Gaps

With an annual operating budget of $396 million, Fanshawe is grappling with escalating deficits: $26.5 million for the current fiscal year (revised down from an initial $38.6 million projection), ballooning to $50.6 million next year and $54.1 million in 2027-28. Ontario colleges operate at a structural deficit of $5,200 per domestic student, receiving $7,700 less per full-time equivalent than the national average—44 percent underfunded compared to peers.

Inflation has driven costs up by $600 per student annually since 2019, compounded by a decade-long tuition freeze for international students reduced by 10 percent. President Devlin recently petitioned for $1.5 billion in annual sector-wide support to bridge this gap and sustain the 'Protect Ontario' workforce plan.

Ontario's Funding Response: A Partial Lifeline?

On February 12, 2026, Ontario announced a landmark $6.4 billion investment over four years—the largest in history—elevating annual operating funding to $7 billion, a 30 percent jump. Key components include:

• Base per-student funding: +6% full-time, +30% part-time at colleges
• Tuition framework: 2% annual increases for three years (avg. $0.18/day for college students)
• OSAP reforms: 25% max grants, 75% min loans; enhanced Student Access Guarantee for low-income families
• 70,000 new in-demand seats, prioritizing rural, northern, French-language, and Indigenous institutes

Minister Nolan Quinn hailed it as ensuring 'sustainability while keeping costs down.' Yet Devlin awaits Fanshawe's specific allocation, cautioning it won't halt all tough decisions. For context, the $1.6 billion yearly infusion splits across dozens of institutions, diluting impact for heavily affected colleges.

Voices from the Frontlines: Stakeholders Weigh In

Staff reactions border on devastation, with unions highlighting the human toll—families disrupted just before holidays in prior rounds. Faculty unions warn of eroded teaching quality and innovation capacity. Students express anxiety over program availability and support, though some welcome smaller classes.

Devlin acknowledges the pain: 'Fanshawe is in a difficult position... another uncomfortable year ahead.' Local leaders in London, where the college anchors 10,000+ jobs, urge federal relief. Broader advocacy from Colleges Ontario stresses underfunding's economic drag.

Economic Ripples in London and Beyond

London's economy, buoyed by Fanshawe's pre-cap vibrancy (third-largest intl cohort in Canada), now faces contraction. Reduced graduates hinder sectors like health care and manufacturing, while housing stabilizes but local businesses suffer from fewer student dollars. Province-wide, Ontario risks a skilled labor shortage, with postsecondary output vital for GDP growth.

Comparisons: Conestoga's 378 layoffs mirror Fanshawe's scale, signaling systemic strain. Positive note: Funding could fund 70,000 seats, potentially rebounding domestic enrollment.

Adaptation Tactics: Tech, AI, and Outsourcing

To mitigate cuts, Fanshawe eyes efficiency gains: deploying artificial intelligence for administrative tasks, technology-enhanced learning, and selective outsourcing. These aim to maintain student support without proportional staffing.

• Benefits: Cost savings, scalable services
• Risks: Job displacement acceleration, quality oversight
• Examples: AI chatbots for advising, automated grading tools

Such pivots reflect a postsecondary evolution toward digital resilience.

Looking Ahead: Advocacy and Recovery Paths

President Devlin's January 2026 pre-budget testimony called for reliable funding to avert further closures. Future hinges on intl cap adjustments, domestic recruitment drives, and funding realization. Optimism tempers caution: Devlin awaits allocation impacts.

For Ontario's college sector, 2026 marks a pivot—balancing austerity with innovation amid policy flux.

Photo by James Fuller on Unsplash

Career Guidance for Higher Ed Professionals

Affected staff can pivot via upskilling. Explore higher ed jobs across Canada, including faculty positions and administrative roles. Tailor your resume with our free template, and check career advice for postsecondary transitions. Ontario opportunities abound at AcademicJobs.ca Canada.

Prospective applicants, rate experiences at Rate My Professor or browse university jobs.