Federal Public Servants to Be Informed of Upcoming Job Cuts in January  

Federal Public Servants to Be Informed of Upcoming Job Cuts in January  
The snow-covered Confederation building is seen in Ottawa on March 10, 2025. The Canadian Press/Sean Kilpatrick
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Federal public service workers are expected to find out about job cuts in their departments when they return to work in January after the holiday break, as Ottawa looks to cut government spending by $60 billion over five years.

Departments such as Environment and Climate Change, Employment and Social Development Canada, and Immigration, Refugees and Citizenship Canada have already told their staff to expect news on job cuts in the new year.

Ottawa is aiming to cut government spending by $13 billion annually by fiscal 202829 as part of the Liberal government’s Comprehensive Expenditure Review laid out in Budget 2025. The ultimate goal, taking into consideration other savings and revenues, is to achieve a total savings of $60 billion over five years.

The budget says Ottawa will achieve savings by “restructuring operations and consolidating internal services and rightsizing programs to realise efficiencies.”

“It will also involve workforce adjustment and attrition to return the size of the public service to a more sustainable level,” the budget reads.

Environment and Climate Change Canada has told its employees that the department will implement expenditure review decisions in mid-January. Employees whose positions might be affected will be notified at that time, the department said.

Employment and Social Development Canada has also said an adjustment in its staffing levels will begin in January and is expected to include changes for permanent positions.

Meanwhile, the immigration department told its employees that it expects to eliminate around 300 positions over the next three years.

The budget projects the public service will return to “a more sustainable level” of 330,000 employees by fiscal 202829, which is expected to include a planned reduction of 1,000 executive positions over the next two years.
The total number of public servants has increased by 100,931 in the last decade, with the number increasing from 287,983 public service employees in 2019 to 367,772 by last year, according to Statistics Canada.

Ottawa has already cut approximately 10,000 positions from the public service over the past year as part of its planned expenditure savings. The number of public servants decreased to around 357,965 this year.

To reach the “more sustainable” level outlined in the budget, Ottawa will have to cut around 30,000 more jobs, the government says.

Approximately 68,000 public servants received letters in early December informing them of eligibility for potential early retirement incentives. The letter said no action was required on the part of the public servants but that those interested in being exempted from pension reductions for early retirement could apply to be considered.

Mohammad Kamal, director of communications for the Office of the President of the Treasury Board, said at the time that Ottawa plans to primarily rely on general attrition or employees leaving voluntarily from the public service. He also said staff could be reassigned to open positions where possible and noted that legislation must still be tabled and passed for the retirement incentives to be granted.

Those who accept the early retirement package offer would be required to retire within 300 days of their acceptance.

Criticism

The Public Service Alliance of Canada (PSAC) has been critical of the plan to shrink the public service sector, saying the union needs complete information on the early retirement incentive before responding.
“We are pressing the government to meet with us to discuss the full details of the [early retirement incentive]. Once we have this information, we will provide further advice to members,” PSAC said in a Dec. 3 statement.
The Canadian Press contributed to this report.