Fanshawe College president tells staff to expect layoffs as program reviews continue
International Level 1 enrolment at Ontario school down 45% for this summer's semesters
Fanshawe College is anticipating layoffs and deficits totalling nearly $100 million over the next two fiscal years as the Ontario school stares down an enormous drop in international student enrolment.
In a video to staff on Monday, Fanshawe president Peter Devlin said Level 1 international enrolment fell 41 per cent for the winter semester, and another 45 per cent drop was anticipated for the summer. Future declines were expected.
"These declines present significant financial challenges. I can confirm that we are forecasting deficits of $35 million in the coming year and $60 million in the following year," he said.
Fanshawe has campuses in London, Simcoe, St. Thomas and Woodstock, serving close to half a million people, according to the college's website.
For the winter semester, international enrolment fell from 3,748 in 2024 to 2,196 this year, the college says. At the same time, domestic Level 1 enrolment rose 11 per cent.
The college is forecasting enrolment revenue to nosedive by nearly $200 million over the next two years, according to a report presented to the college's board of governors last month.
Projected enrolment revenue is set to fall from $371.8 million this year — already about $23 million lower than expected — to $172.3 million by 2027.
Fanshawe is reviewing program offerings, its organizational structure, leased space portfolio, implementing zero-based budgeting and continuing to "tightly monitor our non-essential spending," Devlin said.
"Our financial challenges are significant and will ultimately impact our workforce, which is anticipated to occur in phases as we manage changes resulting from the decline in international enrolment."
Details about staffing cuts won't be made public until a consultant, StrategyCorp, finishes initial work on its review of the college's operations, expected in mid-February, he said.
In an emailed statement, Devlin said an employee town hall would be held in late February.
CBC News has made multiple requests to speak to Devlin or a college representative. On Monday, a spokesperson said no further statements would be provided, and no interviews would be conducted with the media.
It remains to be seen how many staff members may be impacted, along with what programs and campuses.
According to the board of governors report, Fanshawe is forecasting a roughly $100 million cut to expenses by 2027, including $71.8 million for "instructional service."
"Instructional service," the document says, is "activity directly involved with the learning process where there is an expectation of a financial contribution," such as government-funded academic programs or industry-funded contract training.
LISTEN | College financial troubles didn't start with international students: consultant
Fanshawe joins a growing list of Ontario colleges that have announced program suspensions and layoffs driven by the federal government's decision to cap international study permits — to 485,000 in 2024, and 437,000 in 2025 and 2026.
The move came amid concerns a surge in international enrolment was impacting housing and health care, and leaving students vulnerable to exploitation.
Fanshawe's international student population has swelled in recent years, with about 11,700 permits granted to the college in 2023.
With domestic tuition frozen by the Ford government since 2019, post-secondary institutions have had to depend more on tuition from international students, which is several times higher. In 2024/25, international tuition accounted for about 75 per cent of Fanshawe's tuition revenue.
"We are very concerned about these projected deficits, and we will be working very hard, as always, to ensure that our members' rights are protected during this challenging period," read a statement from Mark Feltham, president of Ontario Public Service Employees Union (OPSEU) Local 110, which represents Fanshawe College faculty.
In an interview with CBC News, Feltham said the union knew bad news would be coming, but didn't know the exact extent. So far, he says the union has not been notified in advance of any layoffs, as required under the collective agreement.
He said it was unrealistic to assume there would be no effect on staffing, and that any reduction would likely be felt by contract faculty first, he said.
The union is calling on the province to increase funding for post-secondary education. OPSEU previously estimated $1.4 billion is needed to stabilize the college system.
In 2021, the province's auditor general noted Ontario provided the lowest funding for full-time domestic students compared to other provinces, with a majority of tuition revenue coming from international students.
"That puts these institutions in a precarious position, should students decide to go elsewhere or are no longer able to come to Canada to study," Bonnie Lysyk said at the time.
Some students at Fanshawe's main campus said they were surprised by the deficit's amount and worried what it would mean for the school moving forward.
"I just think Fanshawe will have to adapt to the new reality, and maybe they will have to reduce the amount of programs they offer right now," said Talyta Brasil, who is studying accounting. "They have to be more relevant, I think."
Ava Drysdale, a first-year honours bachelor of commerce student, said she was concerned about the potential impact on faculty.
"I hope everybody is able to keep their jobs. I also hope our program is able to continue."
She added it was sad fewer international students would be able to study at Fanshawe and bring their unique perspectives to campus.
Riley Reaume, a first-year carpentry and renovation student, said much of her program is international students.
"I think that it will affect us," she said. She wondered how the projected deficit may impact campus upgrades and future domestic tuition.
"They pay almost, what, three times the amount that we do? [If] we're losing that, they have to compensate somehow."
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