‘It has been a challenging time for students, staff, and faculty’
Canadian colleges and universities across three provinces are cutting jobs and programs as international student numbers plunge under new federal caps, exposing deep financial vulnerabilities in the post‑secondary sector.
This wave of restructuring shows HR professionals how fast policy and funding shocks can force large, highly unionised employers into complex, public layoffs that test workforce planning, communications and labour‑relations strategies.
The federal government has capped international study permits at 408,000 for 2026, a 7% reduction from 2025 and 16% below 2024, as part of its goal to bring the temporary resident population under 5% of Canada’s total by the end of 2027, Langley Advance Times reported.
Meanwhile, Immigration, Refugees and Citizenship Canada data show about 7,040 international students arrived in January 2026, down 37% from January 2025 (11,215) and 74% from January 2024 (27,565).
Cuts at schools in B.C., Manitoba, Ontario
Trinity Western University in Langley, B.C., said it has been “adversely impacted by recent federal policy changes that have drastically reduced international student enrolment and created financial pressures across the Canadian post secondary landscape,” and must “align our operating budget with forecasted revenue” through cost‑saving measures and resource reallocations, according to a notice posted on its website.
“It is important to note, with humility and care, that Trinity Western is navigating this season from a position of institutional resilience,” the learning institution said. “Through prudent financial stewardship, we have eliminated bank debt, increased our endowment, invested in campus infrastructure, and maintained strong domestic undergraduate enrolment. These foundations give us confidence that this challenging season does not define our future.”
In Abbotsford, the University of the Fraser Valley reported a deficit of more than $20 million “as a result of a significant drop in the number of international students,” saying “the post-secondary environment is changing rapidly” and that it is “navigating significant financial pressures,” the Daily Hive reported.
In Manitoba, Providence University College and Theological Seminary said “the revenue that we had developed through the international program was important to really allow us to flourish as a domestic entity here in Manitoba,” but that the loss of that income “has threatened our ability to function at full speed here on our Otterburne campus,” as it projects revenue to fall to about $13 million in 2026‑27 from $26 million previously, according to a CBC report.
Providence announced budget cuts due to the ongoing government restrictions on international students entering Canada. “These changes have resulted in international student numbers being reduced by more than half, leading to an estimated 50% decrease in related revenue for the upcoming fiscal year,” according to the university.
“Despite these adverse circumstances, Providence will live on into its second century. Our strategy is a dual retraction and attraction scenario,” Providence President Dr. Kenton Anderson said during an employee Town Hall, as mentioned in an article on the university’s website. “While we do need to make certain strategic reductions, we are also actively pursuing new revenue-generating opportunities that align with our mission and can help rebuild enrolment and financial stability.”
Ontario colleges are also contending with provincial funding, even as the province announces a $6.4‑billion sector package and lifts a long tuition freeze (money.ca, https://money.ca). Internal material at George Brown Polytechnic pointed to “a severe drop in international enrolment, the drop in domestic enrolment across the institution, the multi-year tuition freeze and low government grant, and rising labour costs” as the drivers of a 6% cut to all departmental budgets, according to money.ca article.
Humber Polytechnic likewise cited “significant fiscal pressures” despite new provincial funding when it confirmed that layoffs would proceed after a voluntary exit programme “did not fully address the projected fiscal gap for 2026–27,” Global News reported.
The federal government’s cap on its intake of international students had already led to layoffs at some schools in Ontario by late 2024, according to a previous The Canadian Press (CP) report.
‘A challenging time’
Amid all the layoffs, on campus, staff and unions report heightened anxiety. A Trinity Western University (TWU) staff member told a church service audience that “75 people across campus are going to be let go at the beginning of March” because of “losses due to the loss of international student registrations,” warning that “there are just going to be a lot of people in this community who are out of work and searching” despite dedication to the university’s mission, according to a Langley Advance Times report.
At UFV, Faculty & Staff Association president Greg Mather said “it has been a challenging time for students, staff, and faculty,” with the community “heightened and anxious about how this will affect them, their colleagues, and the quality of education and support services we offer our students,” and added that “the fallout from financial restrictions falls primarily on our colleagues,” according to the Daily Hive report.
Providence president Kenton Anderson said “there’s a number of individuals that we have loved and appreciated who will no longer be working with us,” but the institution has pledged to “provide transition support as it's applicable” and is launching a Providence Global initiative to teach overseas cohorts because “if we can't bring the students here, we'll go to them,” CBC reported.
Concordia University in Montreal has also had to deal with layoffs amid the rules in international students.
In 2024, a couple of groups representing universities, colleges and institutes in Canada called on the federal government to pivot from its cap on the intake of international students. The cap will cut the number of international students enrolling in Canadians institutions by about half, said both Universities Canada and Colleges and Institutes Canada, accordig to Global News report.
