Shares of Australia’s IDP ​Education hit a record low on Thursday after the firm expected ‌adjusted earnings before interest and taxes (EBIT) to weaken in the ongoing financial year and unveiled cost-cutting measures to deal with tighter immigration policies across key markets.

The company’s stock plunged as much ​as 29.5%, its worst session since June 2025, to A$1.53, after the ​firm reported a nearly 75% drop in statutory net profit for ⁠the full year.

The Melbourne-based firm co-owns and administers the IELTS – a major ​English-language test for work, study and migration taken by millions of people each year. ​Its poor results underscore the pressures faced by the international education sector as government policies shift, resulting in fewer visa approvals and softer demand.

“These market changes are unprecedented,” said Tracey Horton, ​IDP non-executive director and chair, adding that international student volumes declined significantly amid ​reduced global student mobility.

The company now expects FY27 adjusted EBIT between A$95 million ($67.57 million) and A$115 ‌million, ⁠down from A$122.9 million in FY26. The firm posted a statutory net profit for the full year of A$12.3 million.

Student volumes declined 25% in the company’s four key destination markets – Australia, the UK, U.S. and Canada, directly impacting the firm’s Student Placement ​and English Language ​Testing products.

The company ⁠announced a sweeping restructuring programme on Thursday, cutting 1,250 job roles and reducing its IELTS footprint to fewer than 600 ​venues from about 1,500.

“Cutting venue numbers is a rational response to ​shrinking ⁠demand and demonstrates that the addressable market has been structurally reset,” said Emanuel Ajay Datt, managing director at investment manager Datt Group.

“Structurally, incremental cost-out programs become much more difficult ⁠after ​the first one.”

The latest cuts follow an earlier ​round of measures in 2025, when IDP reduced costs by A$20 million through workforce reductions.