Algoma University Updates: September 2025
Algoma University, like many post-secondary institutions, is grappling with a significant financial challenge.
The sharp decline in international enrolment, down approximately 60% due to federal immigration policy changes and volatility, has led to a projected fall enrolment of about 4,482 students across all campuses, roughly half of last year’s total of more than 9,000.
At the same time, growing domestic enrolment is also a challenge. Any student admitted above the provincial allocation (the maximum number of domestic students eligible for provincial funding) receives no provincial support. This means Algoma U only receives that student’s tuition and fees, making it challenging to expand domestic enrolment. Without change, the University is projected to face a $17 million annual funding gap by 2029. Together, these pressures have created a $6.6 million tuition shortfall and a projected net operating deficit of $5.5 to $7.0 million.
Even with cost-saving measures that reduced expenses by $8 million this year, Algoma has now reached the point where workforce layoffs are unavoidable. This difficult decision, taken only as a last resort, reflects the serious budget and enrolment realities the University is facing.
This webpage provides the Thunderbird and the broader community with answers about workforce layoffs, enrolment, and AU’s budget realities.
Frequently Asked Questions (FAQ)
Below you’ll find answers to some of the most commonly asked questions about what’s happening right now at Algoma University; what we know, what we don’t yet, and how we’re moving forward together.
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. There are 240 faculty members and 316 staff.
The University anticipates 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. These numbers may be subject to change in the face of further challenges and shifts in our enrolment and operating environment.
We anticipate that the layoffs will occur across Brampton and Sault Ste. Marie campuses at this time.
Algoma University understands that people are seeking more information and will share it as it becomes available.
Affected administrative employees will meet with their supervisor and the People and Culture team. For bargaining unit employees, the University will follow the collective agreement process and meet with the Union, a necessary step before more information can be shared. When there’s something concrete to share, it will be communicated through the formal channels clearly, respectfully, in accordance with the collective agreement, and with the kind of transparency the Thunderbird community expects and deserves.
Administrative layoffs occurred this summer, with more planned for later in September. For bargaining unit positions, the University will follow the collective agreement process and meet with the Union, a necessary step before more information can be shared.
Algoma University is committed to supporting its employees during these difficult times. Those affected by layoffs are encouraged to connect with Algoma University’s Employee & Family Assistance Program (EFAP) through Homewood Health. The EFAP is available to employees and their dependents, 24 hours a day, 7 days a week, and is anonymous and free of charge. Employees who are laid off will be given extended coverage, allowing them to access the EFAP program for three months following termination, as well as Career Transition Services.
Call 1-800-663-1142 or Homeweb.ca, with access code AU535.
Two significant factors impacted the international student population of all public post-secondary institutions. Firstly, Canada’s reputation as a stable place for international students to study has been severely tarnished — not because of anything done by post-secondary institutions, but due to continued federal immigration policy volatility, visa backlogs, and a complete breakdown in certainty for international students, particularly with post-graduate work permits.
The second factor is that the competitive intensity to attract international students has increased, particularly from colleges and private institutions in Ontario. They’ve launched new applied master’s programs, expanded recruitment teams, and entered markets Algoma has historically served. Simply put, there was more competition to attract a significantly decreased international student population.
Algoma University has a re-focused international student strategy. It includes:
- Government advocacy: Push for faster visas, higher approval rates, and fair PAL allocation.
- Graduate growth: Expand programs with strong approval and conversion rates.
- Process improvements: Streamline offers, responses, and systems to maximize yield.
- Market focus: Prioritize regions with strong approvals while diversifying for balance.
- Flexibility: Adjust quickly to regulatory and immigration changes.
In the face of financial challenges, Algoma University remains committed to increasing its domestic student population. This Fall, 80% of the new intake are domestic students. However, the current funding model presents a hurdle, as every net new domestic student that Algoma University welcomes above the provincial allocation is unfunded, making it difficult to grow the domestic student population.
Algoma University has been asking the province to increase its current funding allocation (corridor funding). Right now, the way funding is structured works against the University’s plans to grow domestic student enrolment across all campuses.
Algoma University raises this issue in every meeting with provincial and municipal officials to keep it at the centre of our advocacy efforts.
If the allocation is not increased, Algoma University will face a provincial funding shortfall of $17 million per year by 2029.
Reserve funds are designed to ensure the university’s long-term financial resilience. Reserves are more like a financial safety net to be used for one-time, strategic, or emergency purposes (ex, emergency needs, restructuring costs, capital), not ongoing base expenses.
Reserve funds should not be used to pay for recurring financial expenses, such as salaries, benefits, or operating costs, which sustainable base revenues must support. Algoma University is already using some of the reserve funding to take a more gradual approach to workforce layoffs and to cushion cost overruns.
Despite the financial challenges and necessary cost-saving measures, Algoma University’s commitment to providing students with the best education and experience remains unwavering. Investments in student services, wellness, academic support, and campus experience remain protected. Students can expect continued strong support, although some adjustments to operations or service delivery may be made.
Algoma University’s Special Mission remains a top priority, as outlined in the University’s strategic plan. The steps needed to protect the long-term sustainability and future of Algoma U will not alter the University’s commitment to the Special Mission.
Algoma University has made an institutional-wide commitment to fostering equity, diversity, and inclusion as a strategic priority in all aspects of its work, including in our Academic Plan and our EDI Charter. The actions that need to be taken to protect the long-term sustainability and future of Algoma University do not reflect a shift away from the University’s EDI commitments.