Canada Post cuts jobs amid government-led restructuring drive

Canada Post has announced job cuts as part of a major restructuring plan ordered by the federal government, in a move the corporation says is necessary to make operations financially sustainable. The postal operator confirmed that an unspecified number of management positions have been eliminated to “better align” with its transformation goals and the government’s broader reform agenda.

In a statement on Tuesday, Canada Post said the changes were part of its effort to “align with the government’s expectation that leadership and structural change from within the Corporation is essential.” The company added that it must “take decisive action to deliver the services Canadians need in a way that is financially sustainable.”

Internal message confirms job losses

The announcement came alongside an internal message from president and CEO Doug Ettinger to senior leadership. Ettinger acknowledged that “some colleagues” had been informed earlier in the week that their positions were “no longer required.”

“These changes are a continuation of our corporate-wide restructuring efforts to better align our management team with the future needs of the organization,” he wrote. “While these decisions are sometimes necessary, they are never taken lightly.”

Neither Ettinger nor Canada Post disclosed how many positions were affected, citing the ongoing nature of the restructuring. The company said it would continue to implement its “transformation plan” in line with reforms announced by the federal government in September.

Government-mandated reforms and financial strain

The restructuring follows a directive from Government Transformation Minister Joël Lightbound, who on September 25 ordered Canada Post to submit a reform plan within 45 days. The plan calls for transitioning remaining door-to-door mail delivery to community mailboxes and closing post offices in areas no longer classified as rural.

The government also plans to relax delivery standards for letter mail — a measure aimed at reflecting changing mail volumes and modernizing service expectations. According to Lightbound, these changes are expected to save hundreds of millions of dollars annually.

Canada Post has faced deepening financial troubles in recent years, reporting more than $1 billion in operating losses last year. The company says it is currently losing approximately $10 million every day, driven by declining letter mail volumes and increasing operational costs.

Union backlash and parliamentary testimony

The job cuts and reform measures have sparked backlash from labour unions. Earlier on Tuesday, representatives from the Canadian Union of Postal Workers (CUPW) and the Canadian Postmasters and Assistants Association (CPAA) appeared before the House of Commons government operations committee. Both unions urged MPs to hold public consultations before the reforms move forward.

CUPW national director Jan Simpson warned that the proposed changes would “gut the public post office, eliminate thousands of unionized jobs and cause real hardship in communities across the country.”

While Canada Post insists most workforce reductions will be achieved through attrition, CUPW has questioned that claim, arguing the corporation has not been transparent about the scale or impact of planned cuts.

Both CUPW and CPAA acknowledge that reform is needed but say the government’s approach will harm smaller communities. They have called for Ottawa to launch a national consultation on the future of postal services rather than proceeding unilaterally with the restructuring plan.

Concerns over transparency and Purolator profits

Union representatives also questioned Canada Post’s financial disclosures. CUPW negotiator Jim Gallant told MPs that the company’s ownership stake in courier firm Purolator presents a “conflict of interest,” noting that Purolator earned $294 million in pre-tax profits last year while Canada Post recorded an $841 million loss.

“You’re shocked because you have not talked to the union,” Gallant told MPs. “Parliamentarians are starting to talk to the union, and that’s what needs to happen because everything you’re being told by Canada Post is not the truth.”

Lightbound defended the reforms last week, emphasizing that “fundamental” mail services for rural, remote, and Indigenous communities will be protected. He called the measures a “first step” toward right-sizing a company that has become too large given the steady decline in letter mail volumes.

Calls for broader modernization

CPAA national president Dwayne Jones proposed extending the reform timeline from 45 to 100 days and maintaining a moratorium on post office closures during that period. He also urged the government to explore new revenue opportunities such as expanding financial services, installing electric vehicle charging stations, and converting post offices in smaller communities into “community hubs.”

Jones added that Ottawa should set a national “minimum access distance standard” to ensure that residents are not left without postal access following closures or service reductions.

Negotiations resume this week

Amid ongoing tension, Canada Post confirmed that it will meet with CUPW later this week for the first time in nearly a month, with a federal mediator present. The last round of talks took place on October 3, when the company presented an updated offer that CUPW rejected, calling it a repeat of previous proposals voted down by members over the summer.

Simpson told MPs that government interference — including last year’s back-to-work order and the latest reform announcements — has hindered genuine bargaining efforts. “Instead of real bargaining, Canada Post management has relied on the government’s frequent interventions to push through its own agenda,” she said.

CUPW members have been on rotating strikes since early October, part of a month-long dispute over pay, workloads, and job security. The ongoing labour unrest, coupled with the restructuring effort, has left the future of Canada’s postal system uncertain as both sides prepare to return to the table under government supervision.