A person walks past Sheridan College's Hazel McCallion Campus in Mississauga, Ont., on Jan. 26.Nathan Denette/The Canadian Press
Sheridan College is suspending dozens of programs in response to an anticipated $112-million drop in revenue in the next fiscal year caused by policy changes that will drastically reduce the number of international students on its campus.
Sheridan president Janet Morrison said this week the school, with campuses in the Ontario cities of Oakville, Mississauga and Brampton, will suspend 40 programs and review a further 27 others to ensure they’re operating efficiently. It also expects to reduce staff. The suspended programs include several engineering technology and technician specialties, journalism, and more than a dozen offerings in the business school.
Students already enrolled in those programs will be able to complete their studies but no new students will be accepted.
“Without question, the process of contracting by 25 per cent to 30 per cent and adapting will be exceedingly difficult,” Dr. Morrison said in a statement. “Sheridan will look different, but our commitment to learning, discovery and engagement remains the same.”
Colleges and universities across the country are anticipating that they will be short revenue this year, largely as a result of cuts to the number of international study permits being issued by the federal government. Mohawk College in Hamilton has said it’s facing a $50-million deficit next year that will require cutbacks. Seneca Polytechnic in Toronto has announced it will close one of its campuses to reduce costs. Confederation College in Thunder Bay said international enrolment was down 39 per cent this year, a shift that heralds what its president called “a very challenging era” for colleges in Canada.
Canada has lost its reputation for bringing in the best and brightest students
In her statement Dr. Morrison said she had made “difficult but necessary” decisions, including cuts to the college’s administration.
She said the budget cuts will preserve the college’s financial sustainability in the face of chronic underfunding and changing government policies.
In the last year the federal government has brought in a series of changes to the international student program that have had the effect of reducing the number of places available for international applicants while also reducing demand by making the proposition of studying in Canada less attractive.
Sheridan said it expects to enroll about 30 per cent fewer students in the years ahead, which it says will produce a $112-million loss in revenue next fiscal year. In 2023-24 Sheridan had 29,000 full-time students and 140 full-time academic programs.
Sheridan had previously taken a more cautious approach to international enrolment than some of its counterparts in the sector. In 2022-23, when many Ontario colleges were taking in record revenues, it ran a $4-million deficit. That changed in the fiscal year ended March 31, 2024, when it increased its revenues by $114.5-million to $519-million, mainly owing to a jump in international students.
Colleges prepare for revenue declines owing to Ottawa’s cuts to international student programs
Colleges Ontario, the organization that represents the province’s 24 colleges, said it is deeply concerned about the impact of the federal government’s changing policies on immigration and how students and local economies are being affected. It said it is working with the provincial government to find ways to minimize the impact.
International tuition was worth more than $2.3-billion to Ontario’s 24 publicly funded colleges in 2022-23, or roughly a third of all college revenue, according to Sheridan’s published financial results.
The federal government in January announced a 35-per-cent cut in the number of study permits it will issue this year, and a further 10-per-cent reduction next year, part of an effort to address what it described as strain on housing and health care. The government also made it more difficult for students at college to obtain work permits after graduation. Demand from international students also appears to have declined.
Earlier this year, the Ontario provincial government rejected a call from a blue-ribbon panel of experts to allow institutions to raise tuition for domestic students. Instead, it offered $1.3-billion in new funding to stabilize the sector, which was less than the panel said was required.
Dayna Smockum, communications director for Ontario Minister of Colleges and Universities Nolan Quinn, said staffing decisions are the responsibility of institutions.
“We will continue to support the postsecondary sector for their long-term success and sustainability to ensure students can get good-paying, in-demand jobs once they graduate. However, we will not put additional costs on the backs of students and families by raising tuition,” she said.