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Ontario Chronicle: Latest Ontario News, Local InsighsOntario Chronicle: Latest Ontario News, Local Insighs
Home » Canadian Politics » Major Job Cuts Loom for Federal Workers
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Canadian Politics

Major Job Cuts Loom for Federal Workers

January 19, 20265 Mins Read
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Major Job Cuts Loom for Federal Workers
Public Service Alliance of Canada National President Sharon DeSousa speaks as National Executive Vice-President Alex Silas looks on during a news conference, Tuesday Nov. 18, 2025. THE CANADIAN PRESS/Adrian Wyld. ajw
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Many employees in the federal public service have recently received notices indicating that their jobs might be eliminated, with a significant number of these notifications occurring last week.

The Public Service Alliance of Canada reported that 1,775 workforce adjustment notices were sent to its members last week. Since the federal budget was revealed in November, a total of 2,273 members have received such notices.

According to the union, these affected members are employed across various departments and agencies, including Public Services and Procurement Canada, Shared Services Canada, Statistics Canada, and the Treasury Board Secretariat.

The Professional Institute of the Public Service of Canada noted that 1,849 of its members received workforce adjustment notices last week and claimed that public servants are being pushed into a “Hunger Games-style fight for jobs.”

The union held a rally last week to protest against the cuts and stated in a news release that it demands an explanation from the government as to why experienced public servants are facing job losses while spending on outsourcing continues to rise sharply.

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“We are hearing directly from members that consultants are still working alongside employees who received layoff notices this week,” said PIPSC president Sean O’Reilly. “That raises serious questions.”

Government data indicates that Canada spent over $19 billion on external professional and special services in 2024-25-an increase of nearly $2 billion compared to the previous year and approximately $8.5 billion since 2020.

Click to play video: 'Canada budget 2025: Carney looking to cut civil service, boost capital spending'

2:47 Canada budget 2025: Carney looking to cut civil service, boost capital spending

O’Reilly stated that these cuts are part of the government’s extensive expenditure review process and more layoffs could be expected soon.

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The Ottawa government aims to reduce program spending and administrative costs by around $60 billion over five years through its “comprehensive expenditure review.”

The latest federal budget mentions this exercise will include “restructuring operations and consolidating internal services.” It also plans on implementing workforce adjustments along with attrition in order to bring down the size of the public service to “a more sustainable level.”

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The Canadian Association of Professional Employees highlighted that over 2,800 of its members have been given workforce adjustment notices since November’s federal budget announcement.

Around 1,900 among those work at Stat Can; however other members serve in various departments like Natural Resources Canada, Transport Canada, and the Privy Council Office.

The workforce adjustment notices inform workers their positions may be affected by potential cuts but it remains unclear how many will ultimately face layoffs.

The government has set a goal to reduce public service roles by roughly 40,000 from a peak count of 368,000 in 2023-24. So far about 10,000 jobs have already been cut.

This plan includes eliminating around 1,000 executive roles over two years along with achieving a 20 percent reduction in management and consulting services spending within three years.

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 2:08 Billions in cuts: What Carney’s budget means for Canada’s public services

The federal government has distributed letters regarding an early retirement initiative aimed at almost 68 ,000 public servants who might qualify.

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The government says it is trying to enhance attrition rates while sparing younger workers by providing a voluntary option allowing staffers to retire earlier without facing pension penalties.

According to recent details shared by the federal budget , this one-year early retirement program is set for implementation as soon as this month.<

Sharon De Sousa , national president of the Public Service Alliance of Canada , mentioned there seems to be some transparency issues regarding which departments or services will face job reductions.</

More on Canada More videos</

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She explained , “It’s impacted our members; their mental health – they don’t know if they’re going to be next. It’s also concerning for those relying on these services because they can’t predict how they’ll be affected – that’s not fair.”
De Sousa asserted that her union intends to keep fighting hard for as many jobs as possible.
Statistics Canada has already announced plans to let go about850 staff along with reducing12 percentof its executive team.
Carter Mann , spokespersonfor thenational statistical agency sharedlastweekthat Statistics Canadawould notifyaffected employees within twoweeks.

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Severaldepartments including Immigration Refugeesand Citizenship Environmentand Climate Changeaswellas Employmentand Social Developmentinformed theirstaff late lastyearthatdetailsregardingjobcuts wouldbeprovidedthismonth. ©20126 The Canadian Press

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