Algonquin College to save $8 million a year in staffing costs by cutting 37 programs at Ottawa campus

Algonquin College in Ottawa on Tuesday, Feb. 11. (Peter Szperling/CTV News Ottawa)

Algonquin College expects to save millions of dollars a year by cutting dozens of programs at its Ottawa campus and closing its campus in Perth, Ont.

The college’s board of governors will vote Monday on proposals to cut 37 academic programs at the Ottawa campus starting this fall, and close its campus in Perth in August 2026, as Algonquin College deals with a multi-million-dollar deficit due to the new federal cap on international students, a tuition freeze and provincial funding shortfalls.

• Ottawa’s Algonquin College cutting 37 academic programs starting in September

A report says the suspension of the 37 proposed programs will represent a “net saving” of close to $8 million in teaching costs alone by the fiscal year 2026. The closure of the Perth campus will result in annual “recurring net financial benefit” of between $1 million and $2 million, plus the one-time cash proceeds from the sale of the campus.

Algonquin College president and CEO Claude Brulé told students and faculty in a letter that the college is facing “unprecedented financial challenges.”

Algonquin College plans to close enrolment to new students in the fall of 2025 for 37 programs, including Broadcasting – Radio and Podcasting, Interior Decorating, Performing Arts, and several programs in the school of business and hospitality. Algonquin College says program cuts at the Pembroke campus include Police Foundations, Outdoor Adventure Naturalist and Water and Wastewater Technician.

Algonquin College has said it is projecting a $32 million loss in revenue for 2024-25, and “without mitigation measures” the college could see a $60 million deficit in 2025-26 and $93 million for 2026-27.

“Note that while the measures announced this week will make an important contribution to closing the financial gap, it will not completely eliminate the projected deficit,” Brulé said in a letter on Feb. 11.

“Therefore, a Phase 2 is in progress to explore additional measures. This includes an Efficiency and Accountability Initiative undertaken with the Ministry of Colleges and Universities to identify further mitigations that will help restore the College’s long-term fiscal health.”

The report for the board of governors says Algonquin College’s plan to eliminate 37 programs is part of the college’s commitment to strategic program planning and resource optimization.

“By prioritizing programs that meet student demand, maintain financial viability, and align with industry needs, the College continues to adapt its offerings to ensure relevance and excellence,” the report says. “Support measures have been implemented to minimize the impact on students and staff, demonstrating the College’s dedication to fostering a learner-driven culture and maintaining academic integrity.”

The report does not say how many staffing positions will be impacted by the closure of the 37 programs at the Ottawa campus.

Algonquin College is also offering a voluntary buyout to employees and introducing a ‘Targeted Retirement departure Initiative,” a one-time lump-sum financial incentive for employees at least 50 years of age and eligible for an unreduced pension.

Perth Campus

The board of governors will also vote Monday on a recommendation to close the Perth Campus, which first opened in 1970.

• Algonquin College closing Perth, Ont. campus as it deals with ‘challenging fiscal times’

There are currently 107 domestic students and 25 international students enrolled at the school. The Perth campus offers four programs this academic year, down from eight programs in 2018.

“The continued lack of demand for programs at this campus has created a bleak and unsustainable financial position for the Perth campus,” the report says. “Since 2021-22, international students increased enrolment levels slightly, however given the recent announcements made by Immigration, Refugee and Citizenship Canada (IRCC) in 2024 to reduce and cap the number of international student visas, Algonquin College expects that the changes introduced by IRCC will result in a significant decline in the number of international students being enrolled across all three Algonquin campuses.”

The report says that in addition to the $1 million to $2 million in annual savings by closing the Perth campus, Algonquin College will avoid unfunded deferred maintenance. The report says deferred maintenance after 13 years is estimated to be $500,000 in 2024-25, growing to $4.6 million by 2033.

“A sale of the Perth campus property would remove this unfunded liability,” the report says.

The report does not say when the property would be put up for sale or what the college expects to receive from the sale.