Fanshawe College announces further job cuts amidst financial stabilization efforts

Fanshawe President Peter Devlin held a town hall for employees in the wake of program suspensions and major job cuts. CTV’s Gerry Dewan reports.

Fanshawe College employees were informed Wednesday that additional job cuts are expected over the summer months as the institution continues its efforts to address a substantial financial deficit.

However, President Peter Devlin assured staff that the college’s overall situation is becoming more stable.

During a town hall meeting held on the main campus, Devlin outlined the challenges and the steps being taken to navigate the college’s financial landscape. He indicated that the institution is nearing the end of its deficit reduction journey, projecting a “transformed Fanshawe College that will service southwestern Ontario.”

The college has made significant progress in reducing its projected deficit, which earlier this year stood at just over $50 million. Thanks to staff efforts in cutting expenditures and additional government support, the deficit has been narrowed to $10.9 million.

“Your efforts to reduce expenditures, as well as the additional government support has meant that our projected deficit of just over $50 million earlier this year has been reduced to $10.9 million,” Devlin stated.

Fanshawe College entered its deficit-cutting process with a target of eliminating 500 full-time equivalent positions through retirements, voluntary exits, or layoffs. Devlin confirmed that approximately 60 more positions need to be reduced to reach this goal, with the understanding or achievement of this target expected by August. These reductions will span across all sectors, including administration, support staff and instructors.

The revenue shortfall has been significantly impacted by a sharp decline in enrollment, noted as down substantially from previous years, particularly due to federal government limits on international student admissions. Devlin explained that while post-secondary institutions have lobbied for increased international admissions, Canada is currently perceived by prospective students as less stable and less certain compared to other global markets.

In response to the financial pressures, the college received 345 cost-cutting recommendations from staff. One such suggestion, to move convocation ceremonies back to the main campus, was deemed unfeasible due to capacity limitations. However, the college is streamlining these events by consolidating them into one week annually, a move that includes the St. Thomas campus and is projected to save $320,000.

Despite the ongoing adjustments, staff attending the town hall expressed support for the college’s transparent approach.

“When I hear from my colleagues provincewide, I can identify that the information shared at Fanshawe College and the transparency around that and the advance notice outstrips what many colleges are experiencing. So, I’d acknowledge that and my appreciation for that,” said Adam Rayfield, president of OPSEU Local 109, representing full-time and part-time support staff.

Looking ahead, Devlin projects that Fanshawe College will achieve a surplus of $3.7 million by the 2028-2029 academic year, signaling a return to financial health after a challenging period. The college continues to focus on strategic areas, including skilled trades, health advancement, and advanced manufacturing, while also undergoing program reviews and planning for new program additions.