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Humber Polytechnic is offering “voluntary exit packages” to all full-time employees as the school faces ongoing financial challenges including caps on international students and rising operational costs due to inflation.

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A letter sent to employees by Ann Marie Vaughan, Humber’s president and CEO, and seen by the Toronto Sun suggests staff cuts are in order despite the Ontario government’s recent funding announcement for post-secondary institutions.

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Vaughan said the school “continues to navigate significant fiscal pressures outside of this investment, including caps on international students, rising operational costs driven by inflation, and the structural impacts of years of constrained funding.”

Financial challenges

Those financial challenges continue to impact the institution, Vaughan continued, as school officials focus on finding efficiencies and cutting discretionary spending.

“While we are taking every step to minimize impact on our people, the reality is that workforce reductions may be required,” Vaughan said. “These choices are difficult, but necessary. They reflect the scope of our financial challenge, rather than the performance of our people.”

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The school, which wants to keep involuntary job reductions to a minimum, said it is introducing a Voluntary Employee Exit Program (VEEP) for all fulltime employees, including executives. The deadline for those interested is March 9.

“The VEEP provides employees with the option to voluntarily leave the organization with a financial package that recognizes and honours their years of service,” Vaughan said.

Once the deadline passes, the school will review how many employees have shown interest and how it would impact staffing levels.

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Long-term stability

According to the letter, the decision was made to ensure the long-term financial stability of the school as it is expected to ends some programs due to shifting labour market demands.

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“Change is never easy,” Vaughan said. “I believe our community will emerge from this time stronger, more agile, more innovative, and more committed than ever to Humber’s mission. The decisions we make now will position Humber to lead through a period of rapid change.”

Earlier this month, the Ontario government announced $6.4 billion in investments over a four-year period for universities and colleges in the province.

Ford comments on buyout offer

Premier Doug Ford, speaking at a news conference Wednesday in Niagara Falls to mark a major construction milestone for a state-of-the-art hospital, said he supports the school, which is one of the country’s largest with two campuses in Etobicoke.

“I wish them all the best,” Ford said. “Drive efficiencies, run it like a business, educate our kids for jobs of the future.”

The exit package offer comes a year after Humber announced a voluntary retirement program to full-time staff in a bid to shed costs due to financial pressures.

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