Sheridan College Cuts 40 Programs, Staff Amid Revenue Crisis Triggered by International Student Policy Changes

Sheridan College, one of Ontario’s leading post-secondary institutions, is suspending 40 programs and reviewing 27 others in response to an anticipated $112-million revenue shortfall in the next fiscal year. This financial strain is attributed to recent federal policy changes that significantly reduce the number of international students allowed to study in Canada.

Sheridan College President Janet Morrison announced the institution’s plan to manage this financial crisis, which includes program suspensions across engineering technology, journalism, and over a dozen business school courses. The college, with campuses in Oakville, Mississauga, and Brampton, also expects staff reductions to accompany these program cuts. Students currently enrolled in the affected programs will be allowed to complete their studies, but new admissions have been halted.

“Without question, the process of contracting by 25 to 30 percent and adapting will be exceedingly difficult,” Dr. Morrison stated. “Sheridan will look different, but our commitment to learning, discovery, and engagement remains unwavering.”

The financial crisis at Sheridan reflects a broader challenge faced by colleges and universities across Canada. The federal government’s recent decision to cut study permit issuances by 35 percent this year, with an additional 10 percent reduction planned for next year, has significantly impacted international student enrollment. These changes, aimed at addressing housing and healthcare strains, have also tightened work permit eligibility for international graduates, reducing the appeal of studying in Canada.

In 2023-24, Sheridan enrolled 29,000 full-time students across 140 academic programs, with international students contributing substantially to its $519-million revenue. However, the institution anticipates a 30 percent drop in enrollment moving forward, exacerbating financial pressures.

Sheridan is not alone in facing these challenges. Mohawk College in Hamilton projects a $50-million deficit next year, while Seneca Polytechnic in Toronto plans to close one of its campuses. Confederation College in Thunder Bay reported a 39 percent decline in international enrollment this year, highlighting the ripple effects of federal policy changes on institutions across Ontario.

Colleges Ontario, representing the province’s 24 publicly funded colleges, has expressed concern over the economic and social impact of these policies. In 2022-23, international tuition contributed over $2.3 billion—approximately one-third of total college revenue—underscoring the sector’s heavy reliance on international students.

Ontario’s provincial government recently declined a recommendation to raise domestic tuition fees but provided $1.3 billion in funding to stabilize the sector. Meanwhile, federal officials remain steadfast in their commitment to addressing systemic issues, despite criticism from educational institutions.

Dayna Smockum, communications director for Ontario’s Minister of Colleges and Universities Nolan Quinn, emphasized the importance of balancing financial sustainability with affordability. “We will not burden students and families with higher tuition costs but remain committed to ensuring institutions adapt for long-term success,” she stated.

As the ripple effects of these policy changes continue, colleges like Sheridan are grappling with tough decisions to maintain their financial health while preserving educational excellence.