CBC reported this morning that Canada Post is cutting dozens of management positions in an effort to address years of financial losses.
Canada Post has confirmed that nearly 50 managers are receiving layoff notices this week, as part of a company-wide restructuring aimed at improving efficiency and reducing costs. CBC reports that the layoffs follow the termination of three senior executives last month, including the company’s chief financial officer. Two vacant executive roles were also eliminated, marking a 20 per cent reduction in senior management, according to Canada Post.
Canada Post spokesperson Jon Hamilton told CBC that the job cuts are necessary given the company’s ongoing financial difficulties. “It’s an unfortunate reality based on the financial challenges we face, but it’s also something that needs to be done,” he said.
The majority of the affected positions are based in Ottawa, though staff in Toronto, Montreal, and other regions are also impacted. Hamilton explained that the changes are intended to “streamline some processes, help us make decisions faster, and help us prepare for what’s going to be a challenging year.”
While Hamilton declined to specify the amount of money the restructuring is expected to save, he assured that the layoffs do not affect employees involved in daily operations. “They’re not handling mail or anything like that,” he said. “To the public, this will largely be invisible … this won’t impact service.”
Further management layoffs remain a possibility. “Definitely,” Hamilton told CBC, though he emphasized that they would be considered a last resort. Canada Post has had a manager hiring freeze since the summer and is generally not replacing non-union positions when employees leave. The company has also reduced discretionary spending, including travel expenses.
Canada Post, which operates as a Crown corporation without direct taxpayer funding, has been experiencing financial losses since 2018, accumulating over $3 billion in total deficits. Earlier this year, the company warned it would run out of money by the spring due to what it called a “critical” financial situation. This came before a nationwide strike in December, which halted operations for a full month during the peak holiday season.
In response, the federal government recently approved a $1 billion loan to help keep Canada Post running through the 2025-26 fiscal year. “This is ‘keep the lights on’ money,” Hamilton said. “It’s a short-term fix. It provides a financial bridge to get us to the types of changes that we need.”
Canada Post confirmed that the layoffs only affect management staff, with no impact on unionized positions. The Canadian Union of Postal Workers (CUPW) has long argued that Canada Post has too many managers who are not involved in daily operations.
According to CBC, Canada Post employs around 50,000 full-time workers, with management making up about five per cent—or approximately 2,500 employees. Jim Gallant, a national negotiator with CUPW, pointed out that management includes multiple levels of superintendents, managers, and directors, particularly at the corporation’s Ottawa headquarters.
“I have no indication of how many managers they need. What I do know is that there are a lot of them. They get paid a lot of money,” Gallant told CBC. He also noted that about 3,000 frontline positions—such as mail sorters and carriers—have been eliminated since 2006.
The restructuring comes as CUPW and Canada Post remain without a new labour contract. The federal government has established an industrial inquiry commission to examine why negotiations have stalled and to assess Canada Post’s finances, business model, and workplace practices. A final report is expected in May.
This report is based on coverage by CBC.