Sheridan College says it is suspending 40 programs and laying off staff as it faces a dramatic drop in enrollment.

The college expects to have about 30 percent fewer students next year, resulting in a $112 million drop in revenue, according to a statement from its president, Janet Morrison.

Another 27 programs will undergo an “effectiveness review,” Morrison said.

“These changes are necessary for Sheridan to remain a financially sustainable and vibrant community in response to chronic underfunding, changing government policies and social, technological and economic disruption,” Morrison said.

“Sheridan will look different, but our commitment to learning, discovery and engagement remains the same.”

The suspended programs include 13 in the college of applied sciences and technology, 13 business programs, six in the college of animation, arts and design, five in the college of applied health and community studies, and three in the humanities and social sciences.

Students currently enrolled in these programs will still be able to graduate, the college’s website said.

Sheridan College is the latest school to face financial challenges after the federal government announced a cap on study permits for international post-secondary students. The government said the cap was intended to reduce the number of new student visas by more than a third this year.

The government said it would approve about 360,000 university study permits for 2024 – a 35% reduction from 2023.

In September, the Liberal government said it would further reduce the number of international student permits it issues by 10%.

The decision on how to divide the passes among post-secondary institutions is up to the provincial government, which announced in March that the colleges would face the biggest drop in international students.

Of the Ford government budget 2024 revealed that Ontario colleges will lose $3.1 billion in revenue over the next two years due to an expected decline in international students.

Morrison’s statement does not directly blame the cap on international students, but a statement on the college’s website points to “declining national enrolments” and “dramatic changes in government policy” as factors.

Dayna Smockum, a spokeswoman for the Ontario Ministry of Colleges and Universities, said the province will continue to support the post-secondary sector to ensure students can land high-paying, in-demand jobs once they graduate.

She pointed out that in February, the government announced a $1.3 billion boost to postsecondary funding spread over the next three years

However, she said decisions on personnel and human resources matters “only come to the institutions”.