Frequently Asked Questions

Because salaries make up most of our operating budget, some headcount reductions have been necessary. We have focused on minimizing involuntary layoffs by reassigning employees to vacant roles and offering voluntary retirement programs. In 2024–25, 122 employees (75 faculty, 29 staff, and 18 union staff) accepted these programs. Combined with careful decisions about replacing departures, these measures have kept involuntary job losses below 60. Our faculty complement is now smaller, and future staffing levels will depend on investments in strategic areas and securing new revenue sources.

The hiring freeze process has allowed us to better understand which vacancies require immediate replacement and where other options may be considered. We are looking at ways to streamline certain position requests, including leave coverage, to ensure that we are recruiting effectively. Over the long-term, we expect the hiring freeze to transition into a formal review process for new and replacement positions that is tied to approved budgets and workforce plans. 

Externally funded positions are exempt from the hiring freeze. There will continue to be careful review of required positions for ancillary services and positions funded through student fees.    

Reductions will be incremental and vary by unit based on specific needs, rather than occurring through a single, large-scale action. Over the next three years, a range of measures will support these changes. Recent improvements to our budget model, informed by benchmarking, functional reviews, and the work of Innovation Action groups, allow for more targeted, strategic, and integrated workforce planning instead of broad, across-the-board reductions. 

Continuing with secondments is something that host units will determine on a needs basis; however, home units cannot provide guarantees that jobs that are vacant while someone is on secondment will continue to exist.  

Positions may be eliminated only through an approved, policy-compliant organizational change process. Should this occur while an employee is working elsewhere on secondment, the employee will be notified and our obligations under policy 18 will commence when the secondment ends.   

Work is underway to update the Memorandum of Agreement between the University and the University of Waterloo Staff Association (UWSA) regarding issues and policies that affect University Support Group (USG) staff.  Our previous approach to merit pay was not well understood and needed adjustment,  and the Staff Association will continue to negotiate with the University to balance salary adjustments with cost constraints as they work towards a salary agreement for 2026/27.   

Leaders continue to be briefed on the budget process and timelines, so that they can cascade the right information for your unit at the right time. If you have questions about what’s happening in your area, please talk to your unit leader.   

We’ve shared information and updates via email and Daily Bulletin, and will continue to update this website as changes are implemented. In the meantime, please continue to share suggestions and questions though budget@uwaterloo.ca. 

Staff reductions are coordinated across senior leadership to ensure alignment with university-wide priorities and provide consistent approach across employee groups. Decisions are based on budget constraints and the need for roles, not individuals, using benchmarking data and FRITs to identify role-based redundancies. Existing HR policies address individual concerns, and our work on anti-racism, Indigenous reconciliation, and systemic equity continues to inform decision-making. In addition, the Academic Innovation Working Group is supporting faculties with best practices to achieve efficiencies fairly.

The University is committed to providing a competitive benefits package and is not seeking to change these provisions.  
 
Waterloo’s pensions are very well managed and in a strong financial position. The quarterly pension risk management dashboard, prepared by the pension actuary Aon and reviewed by the Pension & Benefits Committee, shows that the pension is in a surplus position on a going concern basis as of September 30, 2024 (the market value of investments is greater than the estimated actuarial liabilities).  The registered plan that holds the investments is a separate entity from the University and it is governed by Ontario pension legislation.   

The University is currently exploring the University Pension Plan, a jointly sponsored pension plan with other major universities in Ontario, to better understand how UPP could benefit our employees and retirements. The administration of the University cannot unilaterally make this decision and will engage with employee groups to discuss if a change to UPP is something we should consider. 

We recognize that financial pressures and global uncertainty are adding to stress and concern about job security. While we can’t eliminate that uncertainty, we are committed to careful, transparent decision-making and to supporting staff throughout this period. Senior leaders are actively engaging with groups such as the Staff Association, Council of Academic Leaders, and Leadership Forum to share information and help teams manage change. 

 The University has reassigned some employees to new roles and extended internal status for those facing job loss, and has kept the Staff Relations Committee informed of any job-related changes. The University continues to invest in supports such as the staff conference, career counselling, the Employee and Family Assistance Program (for employees), and the The Wellness Collaborative, all aimed at supporting employee wellbeing. We encourage staff to use these resources and to support one another with care and compassion.  

We will continue to prioritize work central to our mission and maintain our quality of education while finding operational and organizational efficiencies. This will mean some services and activities will stop.  

We have extended the period where staff who face layoffsare afforded “internal status” for an extra six months after their departure. Depending on eligibility, some staff could have “internal status” for up to two years. We have also kept the Staff Relations Committee informed when we engage with individuals whose roles are affected by a reduction, to evaluate skills and look for opportunities for reassignment. Supports are available from the Employee and Family Assistance Program and through staff career counsellors.  

There are many teams of leaders supporting the President, Provost, and the Vice-President, Administration and Finance in this work. We are a complex organization and rely on the knowledge, skills, and experience of unit heads to guide and implement strategic change at the local level.    

The University reported an overall institutional surplus of $22.4 million for the year ending April 30, 2025, as approved by the Board of Governors. This includes restricted funds and investment gains that cannot be used for day-to-day operations. Within the Operating Fund, better than expected tuition revenue and interest income helped offset the 2024–25 shortfall. 

However, the Operating Fund continues to face a structural deficit in 2025–26 of $44 million, with revenues of $842 million and an unmitigated expense budget of $886 million. Long-standing constraints on provincial grants and domestic tuition, limits on international enrolments, and inflationary pressures on salaries and expenses are the primary drivers. While the University meets its financial obligations, we are managing expenses in the near term as we pursue new, sustainable revenue streams to contain our expenses and find a new sustainable equilibrium. 

The University fund is an important strategic reserve that we use to fund priorities and projects. But like all of our one-time funds, this money is earmarked for projects and work we need to complete to stay competitive and achieve our goals. Once they are gone, we remove our ability to meet the needs the funds were allotted for in the future.   

The University continues to meet its financial obligations and is maintaining reserves that we are drawing down. These reserves are one-time resources, designated for risk and transition, and strategic priorities. Much of these funds are already committed to research support, essential IT infrastructure renewal, and capital projects.

We are exploring getting a credit rating from an independent credit ratings agency, which is the first step in allowing us to take on external debt. There are very specific use cases for taking on external debt, such as construction of a new residence building which will eventually generate revenue, but servicing a structural deficit is not one of them. 

As part of budget reductions, units are reviewing management and leadership roles to ensure they are necessary, aligned, and consistent across the University. This has led to some changes in reporting structures or role responsibilities. At the same time, we are continuing to invest in leadership development, particularly in change management and process improvement, to help leaders support their teams effectively. Data from UniForum is also informing more consistent, evidence-based decision making about where to invest, streamline, or automate. 

We continue to review executive salaries and will evaluate options over the next three years and beyond. The hiring freeze also affects senior positions, and we will ensure that the same scrutiny is applied when these roles become vacant, especially senior administrator roles.  

Given the shifting of national and international priorities, the fiscal capacity of our federal government has become very limited.  At the provincial level, our sector is just one of many competing demands. There is a need for us at both levels to invest in our own economic development, sovereignty, and security – and our institutions play an important role. We continue to demonstrate why investments in our sector, and in particular our institution, create impact with the talent we produce, in the research that we do, and the innovation we contribute across various fields. We have been advocating with Ontario universities to the Government of Ontario for an increase to per student grant funding, which has remained stagnant since 2009, and to lift the tuition freeze, which was cut by 10% and frozen in 2019. On February 12, 2026, the provincial government announced a $6.4 billion investment over four years to the university and college sector. Read more about the funding and what it means for Waterloo.    

While we expect current capital projects to be reduced soon, the University continues to honour existing commitments for capital projects - many of which have been in planning stages for years and are tied to dedicated funding. Several projects, like our new residence, are funded through ancillary revenues and government incentives(not the operating budget) while others rely heavily on donations and grants. It’s worth noting that the University is also able to benefit from government incentives related to student housing, including recent HST rebates. 
 

The Campus Plan is a long-term framework and does not set fixed timelines for demolition or immediate changes to building use. All projects are reviewed through the Capital Projects and Space Allocation Committee to ensure they align with student needs, maintenance priorities, and the Campus Plan. While some current projects will proceed, we expect overall capital activity to decrease in the near future.  

Review of our current processes has identified areas for process improvement and non-salary cost savings. Employees can support by participating in functional reviews and UniForum benchmarking, using AI to streamline current processes, considering what processes we should pause or stop, and look into OHD training.  
 
On the faculty side, the Academic Innovation Working Group is looking at efficient and effective delivery of academic programs, modernizing our academic program offerings, and logistics for alternative credentials. We look to all faculty to participate in making programs viable through redesign and developing cross-unit collaborations. Faculty can also contribute with revenue generating ideas. Currently we’re considering stackable credentials and a new way of educating people and different groups, including continuing education for adults.   

A significant portion of our planning involves identifying cost saving measures. Tools like the hiring freeze, UniForum, the FRITs, and early retirement incentives help to contain our expenses and return to a more sustainable place.  
 
A focus in strategic planning and revenue generation has been around understanding our competitive differentiators and aligning those with societal needs. Projects funded through the Global Futures Office, like the Future Cities Institute’s partnership aimed at reimagining affordable home ownership - locally and nationally, and creating Canada’s largest capstone ecosystem are examples of this. The faculties have also been putting together multi-faceted proposals to increase revenue, based on their unique strengths and offerings, such as bolstering international partnerships and programs, and increasing enrolment through online offerings and cross-faculty collaborations.  

Additionally, many options are being considered for how to optimize and generate further revenue through the work of the Innovation Action Group and the Academic Innovation Working Group. 

We’ve shared a high-level projection of what our budget looks like now to achieve balance, and given that costs are expected to rise, there will likely be further reductions needed next year and the year after. However, innovation action initiatives (such as the functional reviews and internal working group projects) will provide strategic guidance on how to minimize the impact any changes will have on employees. 

The tuition setting process ensures the following factors are considered, and that the proposed tuition fee increases are appropriate to the current financial environment:  

• Changes to provincial policies (in particular the provincial tuition fee framework), changes to provincial operating grant support, and any related policy changes.  

• Overall institutional operating costs, including inflationary pressures and compensation agreements.  

• Waterloo’s rates compared with similar programs offered at other institutions within Ontario, and beyond.  

• The value of a Waterloo degree, both overall and in specific program areas.  

• The demand for Waterloo programs nationally and internationally. 

Ongoing financial pressures across the post-secondary sector, such as declining international enrolment, frozen domestic tuition, limited grant growth, and rising compensation costs, require Waterloo to find evidence-based ways to manage spending. NDI brings deep higher‑education expertise and benchmarking data that helps assess service costs, effectiveness, and how peer institutions are responding to similar constraints. 

The decision to engage NDI was led by the President, Provost, and Vice-President, Administration and Finance, in consultation with and supported by Executive Council. 

In 2024, Nous Data Insights supported our functional reviews of MarComm, IT, and Finance, and again through our UniForum benchmarking work in 2025. NDI brings deep experience of the challenges in the Canadian post-secondary sector, and a standard, efficient approach reviews in an expedited time frame. In some reviews, Nous Group has been engaged to propose organizational design options and support change management based on the results of the reviews. 

We also work closely with our internal auditor, Deloitte, and other consultants (including IT Cybersecurity) that complement our internal expertise and provide recommendations for our consideration. None of these partners make decisions related to the University’s finances or structures. As part of our cost reduction strategy, we are carefully reviewing all consultant contracts and fees to ensure we are spending carefully in areas that require additional expertise.   

Our initial commitment to UniForum is for a two-year period, with the option to extend in the future. We will evaluate the program carefully after the first two years to determine whether an extension is warranted. 

UniForum provides benchmarking information based on our own data to assess the cost and capacity of delivering administrative functions across the University. This data also allows us to understand how we compareto peer institutions. Comparisons look at the end-to-end delivery cost of a particular function (e.g., finance, IT, research administration) broken into the transactional activities of the function and the non-transactional activities of the function, and where functions take place across the University. The survey also assesses service satisfaction levels within functional areas.  

UniForum is a collaborative program co-governed by the members of the program who share their data and lessons learned for the combined benefit of the sector. Universities who are part of UniForum have repurposed up to 6 per cent of their expenses from administration to teaching and research. They have also increased the effectiveness rating of services that academic and professional staff use. 
 
Senior leaders have been in touch with other universities including at U15, Universities Canada, and the Council of Ontario Universities, where they shared their experiences and feedback about many issues, including working with Nous Data Insights and UniForum.    

The UniForum methodology was developed by academics with relevant expertise, and has been modified and improved over time with the participation of greater numbers of institutions. The mix of universities participating in the program is diverse in terms of scale, research intensity, and discipline, which allows for appropriate comparisons to be made. In its methodology, UniForum normalizes for these differences across the comparator set

UniForum is a proprietary service provided by Nous Data Insights. As such, it does not publish details of its methodology for review but the statistical approach has been validated by academics at a UK Russel Group in the past. Data on individual institutional identifiers is protected through the agreements with each institution, so the raw data is not publicly available. UniForum was established by a former VP of Finance and Operations at the University of New South Wales in Australia, and by a former academic and research scientist.  Anecdotal evidence reassures us that theUniForum approach follows proven practices and processes  that are common among social scientists. 

UniForum was established in 2009 by Jonathan Blakeman, a former VP of Finance and Operations at the University of New South Wales in Australia, and by Edward Curry-Hyde, a former academic and research scientist. Their company, Cubane Consulting was acquired by Nous Group, an international consulting firm, in 2021 to form Nous Data Insights.    

Universities who participate in the UniForum program agree to share aggregated data with each other for benchmarking purposes, and that this data will only be shared through methods and tools facilitated through Nous Data Insights. For additional information, please visit Nous Data Insight’s Privacy Notice.  

The way that the University runs is enshrined in the University of Waterloo Act. This will not change. 

Each functional review is managed by a Functional Review Implementation Team (FRIT), which is led by a Vice-President and Dean under a dyad model, and is responsible for implementing changes in their area. While the scope of work and recommended activities vary by team, organizational plans are expected to be finalized by the end of April 2026. In each review, we continue to look for ways to limit the impact on individuals by moving employees into vacant positions where possible, and extending internal status for employees whose positions have been removed. The implementation of any changes will be a multi-year process to ensure a smooth transition and result in sustainable reductions in salary costs. 

The results of these surveys have now been shared with University leadership as a support for ongoing resource planning. Results are also being used by Functional Review teams to inform future planning. UniForum offers tools for senior leaders that provide access to the data collected, highlighting key findings that could be areas of interest for deeper analysis and allowing us to compare service-level satisfaction with the level of investment. It is up to Executive Council members to decide whether and how they want to engage their teams regarding data specific to their area.  
 
 

This information gives us a clearer picture of higher education benchmarks, highlighting both strengths and opportunities for improvement. Here are some key takeaways:  

• Satisfaction with our administrative services is very high overall: faculty members report the highest levels of satisfaction with our administrative services, and professional staff satisfaction within faculties is at the median in comparison to other universities.    

• The amount we invest in service delivery is in line with universities that generate considerably more revenue than we do. Some of this additional investment is due to our co-op program, which is a key differentiator for Waterloo.  

• The data indicates that we pay more for our administrative services than the median for a university of our size and research intensity.    

Data gathered by Nous is being used by internal teams such as the Innovation Action Group and the Functional Review Implementation Teams (FRITs) to guide important initiatives:  

• The Innovation Action Group is using this data to help support their reviews of administrative services and programs such as enhancing travel administration, standardizing hardware and software procurement, and improving access to information and transparency. In addition, the IAG is currently conducting a review of Human Resources functions across the University.   

• (FRITs) are supporting functional reviews in Marketing and Communications, as well as IT and Finance, to look for deeper understanding of how we deploy our people resources, and where we have opportunities to improve efficiency while maintaining satisfaction.   

UniForum brings a deep knowledge of the sector, having worked with institutions globally for a decade. Their evidence-based methods for validating records and uncovering anomalies, coupled with Waterloo’s high response rate and large sample size, result in a lower Margin of Error (MoE). This means our results are more statistically reliable.   

Margin of Error: The margin of error (MoE) in the data collection expresses, at a certain level of confidence (i.e., 95% confidence), how closely around the survey result we expect the actual population’s results to be. The lower the MoE, the higher the confidence. Higher response rates and larger sample sizes lead to lower MoE.   

UniForum’s proprietary methods for validating records (such as correcting for coordinated/overinflated responses, duplication of free text responses, etc.) have been benchmarked across universities globally to identify anomalies.  

We’re confident that based on engagement throughout the process (as demonstrated by high training participation rates, participants exceeding the required response rate, and requests for individual support) the answers our community provided are informed, sincere, and accurate. We trust that participants answered in good faith, with an understanding that their responses will inform decision making in the University’s work to optimize services.