Cape Breton University eliminating staff positions amid $6.8M deficit

Cape Breton University has approved a $106 million operating budget and several staffing cuts.

The Cape Breton University Board of Governors has approved a $106.5 million operating budget as part of a three-year plan that will result in cuts to dozens of staff positions.

The 2025-2026 operating budget reflects a $6.8 million deficit, which was originally projected to be more than $20 million, according to a news release from the university. The institution says it has been significantly impacted by the federal government’s cap on the amount of international students permitted to study in the country in 2025.

“The last five years, CBU has seen peak student enrolment, reaching 9,100 in 2024,” the release says. “Recent modeling, which considers IRCC impacts and new program development, shows a projected student population of roughly 5,100 - 5,400 over the next three years, resulting in an estimated 25 per cent decrease of CBU’s original enrolment target to stabilize at 7,100.

“This is a loss of 3,200 students for CBU and a $33 million loss in tuition revenue for 2025/26.”

The university says it will make “strategic investments” over the next three years to develop programs and attract domestic and international students.

It notes that since more than 70 per cent of its costs are related to staff, the revenue loss will result in:

• the non-renewal of 56 term positions
• the elimination of 14 positions through attrition and by not filling several staff vacancies
• the elimination of upwards of 42 additional positions under the three-year plan

“We have, and continue to make, every effort possible to minimize the employee impact caused by IRCC policy changes. However, the IRCC regulations have hit Canadian universities hard, and CBU is not an exception,” says president and vice-chancellor David C. Dingwall in the release. “We are working with our management team to determine further employee impacts and could see layoffs as early as this June.”

As part of mitigation strategies, the university will prioritize the placement of existing full-time staff in new positions to support the medical campus, which is scheduled to open this summer.

The university also notes there will be some increases in student fees as part of the three-year plan.

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