The university gets paid per student-year. So, yes.
But I can also see an argument that more advanced classes in later years (eg Advanced AI) are at least as valuable for the university compared to earlier subjects. They might have smaller class sizes, but if the subject material is more difficult, it'd be harder to find sufficiently knowledgable teachers. And the availability of classes like that (arguably) sets good schools apart from bad ones.
Its certainly a difficult problem. But it sounds like they aren't solving it well, and I think they're slowly driving out one of their best teachers.
But I can also see an argument that more advanced classes in later years (eg Advanced AI) are at least as valuable for the university compared to earlier subjects. They might have smaller class sizes, but if the subject material is more difficult, it'd be harder to find sufficiently knowledgable teachers. And the availability of classes like that (arguably) sets good schools apart from bad ones.
Its certainly a difficult problem. But it sounds like they aren't solving it well, and I think they're slowly driving out one of their best teachers.