Sharp drop in enrolment leads to job cuts at Algoma University

Plunging international enrolment has created a major tuition crisis at Algoma University, where up to 75 jobs could be eliminated.

Reductions in international student numbers have caused enrolment at Algoma University in Sault Ste. Marie to drop by 50 per cent, the school’s president said Thursday.

As a result, as many as 75 jobs could be cut as the university deals with a budget deficit as high as $7 million.

In a statement to CTV News, Dr. Sheila Embleton, Algoma’s interim president and vice-chancellor, said the drop in international student numbers was more severe than expected.

“Like many post-secondary institutions, Algoma University has seen its international student intake decline sharply by approximately 60 per cent, compared to the 50 per cent decrease projected in the April budget,” Embleton said in the statement.

Enrolment down by 4,482 students

“Final fall enrolment is anticipated to be about 4,482 students across all campuses and sites, roughly half of last fall’s total of more than 9,000.”

As a result, she said tuition revenue is $6.6 million less than forecast and the university’s operating budget is facing a deficit between $5.5 million and $7 million.

“Despite a year of cost-saving measures, we have unfortunately reached the point where workforce layoffs are unavoidable to address these budget and enrolment realities,” Embleton said.

“This decision was not made lightly and represents a true last resort. We anticipate laying off between 50 and 75 employees in the coming months, aligning our employee complement with our student population to protect the university’s long-term sustainability and future.”

Even those numbers could change, she added, depending on more financial challenges or changes to enrolment figures.

“We recognize how difficult this news is for our entire Thunderbird community,” Embleton said.

“Our priority is to support our students, faculty and staff, maintain open and compassionate lines of communication, and ensure Algoma remains resilient while continuing to deliver unwavering academic excellence and quality learning experiences for the students and communities we serve.”

Employees affected by layoffs are encouraged to access the university’s Employee & Family Assistance Program (EFAP) through Homewood Health.

Employees who are laid off will be given extended coverage so they can access the EFAP program for three months following termination, as well as career transition services.