Northern College cutting staff, blames federal international student changes

Northern College, based in Timmins, Ontario, has earned more than $98 million in revenue from its international programs during the past school year. However, the college is now facing financial challenges, projecting a $6 million deficit for the upcoming academic year, with the shortfall expected to double to $12 million in 2026-27. This projection has raised concerns and prompted the college to take steps to address the financial difficulties, including cutting staff.

The deficits, according to a news release, are largely a result of federal changes to the international student study permit and post-graduate work permit eligibility. These changes have had a significant impact on the college’s operations. Although the college has refrained from providing specific details on how many jobs are being affected, it has confirmed that it is cutting staff in response to these financial pressures. Additionally, the school has not disclosed the current enrolment numbers for its international students.

Mitch Dumas, president and CEO of Northern College, stated in the release, "We have worked diligently to develop solutions to this concerning issue, exploring all alternatives that put our staff first." He acknowledged the difficult circumstances, emphasizing the impact of the changes to international student policies and other financial factors. "Unfortunately, due to the combination of existing funding models, reduced international recruitment numbers, and growing costs due to inflation, Northern has had to make the difficult decision to reduce its existing staffing complement," Dumas explained.

To address the situation, Northern College has taken measures such as offering early retirement incentives and voluntary exit packages to employees. Where necessary, layoff notices have also been issued. The college is still optimistic that it will be able to find new revenue streams and diversify its financial sources in order to get through this.

"This isn’t the first time in our institutional history that we’ve faced an uncertain future or endured financially difficult times, and we’ll weather this as we’ve done before," Dumas remarked in the statement. "I would like to say that this was an incredibly difficult decision for us to make."

For the past ten years, Northern College had been banking on revenue generated from international students. In fact, international student enrollment has accounted for a big chunk of revenue that has stabilized its finances. But recent federal changes have put the college's revenue stream into disarray. Early in 2024, the Canadian government introduced a cap on the number of international students who can receive study permits. This change has drastically reduced the issuance of permits, especially in Ontario, a place that had long been one of the most favored destination points for international students.

The new rules, which also affect post-graduation work permits (PGWPs), have cut the number of international students who can work in Canada after graduation. In Ontario, the number of PGWPs issued has dropped by 50 percent, adding to the financial woes of colleges like Northern College, which have relied heavily on international students.

Northern College had also allied with private institutions to increase its enrollment numbers. One example was its partnership with Pures College, a private school in Ontario, which received attention when in 2023 the institution had to cancel the acceptance letters of the 503 international students, predominantly coming from India. The reason was the issue of a much larger number of student visas than the institution could take. This outnumbered the capacity to enroll in the programs at the school by many students.

Northern College is finding alternative ways to change and adapt in response to the changing environment for long-term sustainability. The institution's efforts in finding alternative sources of revenue and adjusting to a reduced international student intake reflect the continued commitment it has to its community, staff, and students. With the setbacks experienced, the college is determined to continue navigating through uncertainty and providing quality education.