Projecting $50M deficit, Mohawk College president warns of layoffs, blames government policies

The president of Mohawk College, Paul Armstrong, recently revealed that the institution is facing a $50-million deficit in the 2025-2026 school year due to a drop in international student enrolment. This deficit is expected to result in layoffs, as Armstrong informed workers in a memo on Oct. 30.

Armstrong explained that the college had already been planning a thorough review of its programming when he took on his role in July. However, changes in government policies have forced the institution to take an even closer look at its operations. The significant decrease in international student enrolments has created a gap between revenue and expenses, leading to the projected deficit.

Heather Giardine-Tuck, president of Local 240 of the Ontario Public Sector Employee Union (OPSEU), expressed concerns about the impact of potential layoffs on both programs and students. She represents approximately 1,000 faculty, librarians, and counsellors at Mohawk. Similarly, Susan Lau, president of OPSEU Local 241, which represents support staff, highlighted the anxiety and stress among employees due to the uncertain future.

According to Mohawk spokesperson Bill Steinburg, the college saw a decrease in international enrolments from 7,309 in fall 2023 to 6,166 this past fall. Additionally, the number of international applications dropped from 5,691 at the same time last year to 3,065. This decline in international students has prompted the college to anticipate impacts across all areas, including program reductions, service cutbacks, and staff layoffs.

Armstrong emphasized that the institution is committed to exploring all options to reduce costs before resorting to layoffs. Mohawk currently employs 1,200 full-time staff and up to 1,250 part-time employees, with a fluctuating number of enrolled students each semester.

Both OPSEU presidents attributed the financial challenges to chronic underfunding from the provincial government, which has forced institutions to rely heavily on revenue from international students. They criticized the recent policy changes by the federal and provincial governments, which have restricted the number of international students and affected post-graduate work permit eligibility.

Armstrong raised concerns about the government’s decision to limit the number of programs eligible for post-graduate work permits, stating that it could deter international students from choosing Mohawk. Despite the challenges, he defended the college’s approach to international education, emphasizing the importance of diversity and alignment with local labour market needs.

The federal government’s office, represented by Minister of Immigration, Refugees and Citizenship Marc Miller, defended the policy changes as necessary to protect the integrity of the international student program. However, critics like Steve Orsini, president of the Council of Ontario Universities, argued that the cuts in public funding have led to financial constraints for institutions.

Armstrong reiterated that the layoffs at Mohawk will be distributed evenly across all staff levels and that managers will not be exempt. The unions are working to ensure that members understand their rights during this challenging period. Despite the short-term impacts, Armstrong believes that making changes now is essential to safeguard the college’s long-term sustainability.

In conclusion, Mohawk College is facing significant financial challenges due to the drop in international student enrolment. The institution is taking proactive measures to address the projected deficit, but the impact on programs, services, and staff is expected to be substantial. It remains to be seen how Mohawk will navigate these challenges while maintaining its commitment to student success and community engagement.