Student numbers have tumbled at Taranaki's Western Institute of Technology, this year and it is forecasting a $2.4 million deficit.
The institute warned that courses with low enrolments are likely to be cut, which could lead to job losses.
Student numbers have fallen by 22 percent this year due to high employment and a downturn in foreign students.
The institute has employed an independent advisor to help turn things around and is likely to reduce programmes with low demand.
Earlier this year, the Qualifications Authority downgraded the institute's rating, saying it no longer had confidence in the level of education and its internal quality-assurance control.