Canada Post has warned it is now “effectively insolvent” as the Crown corporation faces record losses and prepares for major service changes ordered by the federal government.
The message came during the Nov. 18 annual public meeting, where executives outlined a deepening financial crisis and signalled that Canadians should expect a significant restructuring of postal operations.
President and CEO Doug Ettinger said the postal service is confronting “a financial reality we can no longer ignore,” noting that Canada Post expects to lose nearly half its workforce–about 30,000 employees–by 2035 through retirements and voluntary departures as it reshapes its operations. He added that relying on federal bailouts is “unsustainable” and that the postal model no longer reflects how Canadians use the mail.
Chief financial officer Rindala El-Hage reported a pre-tax loss of more than $1 billion in the first nine months of 2025, including an unprecedented third-quarter loss of $541 million, the largest in Canada Post’s history. Between 2018 and 2024, the corporation accumulated $3.8 billion in losses. Ottawa has authorized up to $1.034 billion in repayable funding to keep the postal service operating through March 2026, most of which has already been drawn.
The annual meeting followed a September announcement from the federal government directing Canada Post to begin a formal transformation of its operations. Under the new mandate, the corporation may expand community mailboxes, adjust letter-mail delivery standards and revisit the 30-year moratorium on rural post-office closures, though officials say access for rural, remote and Indigenous communities must be protected.
Canada Post submitted its transformation plan to Ottawa earlier this month. While the details have not been made public, both government and corporate statements confirm it includes modernization of the retail network, cost reductions across the organization and changes designed to reflect declining letter-mail volumes and increased competition in the parcel sector.
The Canadian Union of Postal Workers has strongly opposed the transformation agenda, arguing it threatens jobs and compromises public service, especially in smaller communities. The union, currently in a difficult round of bargaining, claims Canada Post and the federal government have exaggerated the financial crisis to justify cuts–an assertion the corporation denies.
For collectors, dealers and exhibitors, the forthcoming changes may affect delivery standards, the availability of local post-office services and handling of registered or tracked items. Canada Post says it will “proceed thoughtfully” and provide regular updates as the transformation plan moves forward, but many in the philatelic community will be watching closely for any adjustments that could impact mail reliability and access.