The president of British Columbia's Camosun College says a budget shortfall of $2.5 million next year may mean the elimination of up to 40 positions.

Kathryn Laurin confirmed that as well as cutting up to five per cent of its workforce, the Victoria-based college would also be increasing tuition fees by two per cent.

Laurin says steps are being taken to reduce the number of people who will actually be laid off.

"We'll look at opportunities for early retirement, attrition, so not filling vacant positions, voluntary severence and so on, so we're hoping that that number will be somewhere between 15 and 20 people who will actually be out of a job," she said.

The college currently serves approximately 20,000 students registered in degree, diploma, certificate and continuing education programs.