Canada: 10,000 staff laid off, 600+ courses cut after foreign student cap

Business Standard

11-07-2025

Canada's colleges have been sinking into debt and losses since the federal government announced a cap on international student intake early last year. Nearly 10,000 college staff—faculty and support workers—have either already lost their jobs or are expected to be laid off in the coming months. The Ontario Public Service Employees Union (OPSEU), which represents 55,000 college workers, said the cuts mark 'one of the largest mass layoffs in Ontario's history.'
'This is bigger than the Hudson's Bay liquidation, which laid off 8,000 employees across Canada,' said JP Hornick, OPSEU's president, during a press conference outside the Story Arts Centre campus of Centennial College in Toronto. The campus is due to shut later this year.
Hornick said about 1.5 million people—nearly one in ten Ontarians—have witnessed a campus closure in their communities.
The union also released a press statement in which Hornick said, 'The fallout from the college funding crisis falls squarely at Doug Ford's feet. Workers are united to fight for a future where students, no matter their background, can afford to access the education they need to get a good job.'
'This government has picked a fight with not only the 55,000 workers in our college system but with all of OPSEU/SEFPO, and we will not relent until we see the funding and policy changes needed to save our college system.
The layoffs follow a 41% drop in Indian student enrolment in Canadian colleges and universities compared to 2023. The sharp decline has dealt a major blow to tuition revenue, which many colleges rely on to stay afloat.
According to a new faculty contract between OPSEU and the College Employer Council, more than 600 college programmes have been suspended or cancelled since the student cap was introduced. The agreement noted that 23 out of Ontario's 24 colleges reported a 48% drop in first-semester international student enrolment between September 2023 and September 2024.
Nineteen colleges also reported more than 8,000 job losses—either already implemented or planned. The union said the real figure is likely higher, as some colleges had not submitted layoff data by June.
Government defends the cap
In response to questions from Business Standard, Immigration, Refugees and Citizenship Canada (IRCC) said the cap was necessary to bring down the number of temporary residents in Canada.
'The annual growth in the number of international students couldn't be sustained while ensuring students receive the support they need,' said Mary Rose Sabater, IRCC's communications adviser.
She said the cap was based on a zero-net growth model in 2024, with a further reduction introduced to meet the federal government's target of reducing the temporary resident population to 5% of the total population by the end of 2026.
'With this in mind, the national cap for 2025 is set at 437,000 study permits issued based on a 10% reduction from 2024 targets,' Sabater said.
Colleges feeling the pressure
Centennial College, where OPSEU held its press conference, disputed the union's claim that over 100 programmes had been cut. 'Centennial is facing significant financial pressures due to external factors, including the federal policy shifts related to international students,' the college said in a statement, adding that it had suspended 54 programmes in 2025.
The college said it was working with sector partners to address the crisis and to continue serving Ontario's economic needs.
Hornick pushed back, saying the impact went far beyond international student-heavy programmes. 'It's also programmes we domestically need, like nursing, child and youth care, environmental technologies, and specialised art training,' she said.
One such case is the culinary management course at Confederation College in Thunder Bay, the only programme of its kind within 1,000 kilometres, which the union said had supported food security in northern Ontario.
Hornick also accused both the provincial government and colleges of trying to keep the full scale of the cuts under wraps. 'They never intended to tell the public about the full scope of job and programme cuts,' she said.
Universities say the crisis is limited to colleges
Andrew Carroll of Queen's University told Business Standard that most Canadian universities had not experienced the same surge in international student numbers as colleges.
'While in countries like the US, colleges and universities are very similar, in Canada there is a big difference,' said Carroll. 'Community colleges – such as Conestoga, Seneca, and Humber – here in Ontario are the most involved.'
Indian students still keen, but numbers drop
India continues to be the biggest source of international students in Canada. In 2025, there were 137,608 Indian students enrolled—down 41% from the year before.
'Interest in studying in Canada, including from Indian nationals, remains strong,' Sabater told Business Standard. 'Following the new student requirements, Indian nationals can continue to apply to study in Canada, and Canadian designated learning institutions continue to welcome students from India.'
Sabater added that IRCC would work with provincial governments and institutions to build a more sustainable model. 'These changes will help the education sector align its capacity and allow the population growth at a sustainable pace,' she said.
In January, Business Standard had reported that Canadian colleges could face losses of around ₹8,000 crore due to the student cap. 'There is already a considerable financial impact, and several colleges have announced plans to discontinue many courses,' Canada-based immigration analyst Darshan Maharaja told Business Standard at the time.