Sheridan College to Suspend 40 Programs and Cut Staff Amid Financial Crisis Triggered by International Student Policy Changes.

Sheridan College, a prominent educational institution in Ontario, is facing a significant financial crisis due to changes in federal policy that have slashed the number of international students allowed to study in Canada. As a result, the college has announced the suspension of 40 programs and plans to review 27 others in an effort to cope with an anticipated $112-million revenue shortfall in the next fiscal year.

Introduction to Sheridan College’s Financial Struggles
Details of Program Suspensions and Staff Reductions
Impact of Federal Policy Changes on International Students
The Broader Impact on Ontario’s Postsecondary Institutions
Government Responses and Institutional Adaptation
Program Suspensions Breakdown

1. Introduction to Sheridan College’s Financial Struggles

Sheridan College, with campuses in Oakville, Mississauga, and Brampton, is facing a 30% drop in international student enrollment. This has been driven by the federal government’s recent decision to reduce the issuance of study permits for international students by 35%, further compounded by a 10% reduction expected next year. These changes were part of a broader strategy to manage Canada’s housing and healthcare challenges, but they have had a profound economic impact on institutions like Sheridan College.

Sheridan’s President, Dr. Janet Morrison, explained the situation, emphasizing the challenges ahead for the institution. She said, “Sheridan will look different, but our commitment to learning, discovery, and engagement remains unwavering.”

2. Details of Program Suspensions and Staff Reductions

Sheridan College has announced the suspension of 40 programs, which include courses from various disciplines, including engineering technology, journalism, and business. Additionally, the college is reviewing 27 other programs for potential future suspension. As part of these adjustments, staff reductions are expected to accompany the program cuts.

Students who are currently enrolled in the affected programs will be allowed to complete their courses. However, new admissions to these programs have been halted. The suspension of these programs is expected to be a rolling process over the coming months and years.

3. Impact of Federal Policy Changes on International Students

The reduction in international student enrollment is a direct consequence of the federal government’s recent changes to study permit policies. In the 2023-24 academic year, Sheridan enrolled 29,000 full-time students, with international students accounting for a significant portion of the institution’s $519-million revenue. However, the new policies have caused a substantial financial loss, with projections indicating a revenue shortfall of $112 million in the next fiscal year.

The Canadian government’s decision to limit international student intake has had a ripple effect on other educational institutions across Ontario and beyond. Colleges Ontario, which represents 24 public colleges, has warned about the far-reaching consequences of the policy changes on both the economic sustainability of colleges and the broader social fabric of the province.

4. The Broader Impact on Ontario’s Postsecondary Institutions

Sheridan College is not alone in facing these challenges. Institutions like Mohawk College and Seneca Polytechnic are also grappling with revenue deficits and have implemented similar measures to adjust to the changing environment. Mohawk College, based in Hamilton, is forecasting a $50-million deficit for the upcoming year, while Seneca Polytechnic in Toronto is planning to close one of its campuses. Furthermore, Confederation College in Thunder Bay has reported a 39% decline in international student enrollment this year.

In total, international students contributed over $2.3 billion to Ontario’s public colleges in 2022-23, with many institutions relying heavily on this revenue to fund their operations. The changes to federal immigration and work permit policies are putting a tremendous strain on the financial stability of Ontario’s postsecondary institutions.

5. Government Responses and Institutional Adaptation

In response to the financial challenges faced by colleges like Sheridan, Ontario’s provincial government has taken some steps to help stabilize the sector. The government recently declined a recommendation to increase domestic tuition fees but provided $1.3 billion in funding to support institutions through the crisis. At the federal level, officials have remained committed to addressing the housing and healthcare issues that have prompted the policy changes, despite criticism from educational institutions.

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

6. Program Suspensions Breakdown

The following are the affected programs at Sheridan College that will be suspended or reviewed:

Faculty of Animation, Arts & Design:

Visual Merchandising Design
Performing Arts – Preparation
Journalism
Game Level Design
Honours Bachelor of Photography
Visual and Creative Arts – Advanced Diploma

Faculty of Applied Health & Community Studies:

Honours Bachelor of Community Safety
Regulatory Affairs
Paralegal
Investigation – Public and Private
Community and Justice Services

Faculty of Humanities & Social Sciences:

TESOL Plus
Creativity and Innovation
Honours Bachelor of Creative Writing & Publishing

Faculty of Applied Science & Technology:

Technology Fundamentals
Chemical Engineering Technology
Electronic Engineering Technology
Mechanical Engineering Technology – Design
Chemical Laboratory Technician
Electronics Engineering Technician
Electromechanical Engineering Technician
Mechanical Engineering Technician
Computer Engineering Technology

Pilon School of Business:

Business Administration Accounting
Business Administration Finance
Honours Bachelor Business Administration Marketing Management
Advertising – Account Management
Business Human Resources
Professional Accounting Graduate
Office Administration – Executive
Business Finance
Honours Bachelor Business Administration Supply Chain Management

Sheridan College’s decision to suspend programs and reduce staff highlights the increasing financial pressures faced by educational institutions in Ontario. The ripple effects of these policy changes are evident throughout the province, with many other institutions also adjusting to the new reality of reduced international student enrollment. As the government works to address the root causes of these challenges, it remains to be seen how institutions will adapt to ensure their long-term financial sustainability while maintaining the quality of education for students.

For a free consultation about your work permit and student permit options, reach out to the CAD IMMIGRATION today!

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