CFO calls corporation ‘effectively insolvent’ at annual public meeting
Canada Post expects to eliminate 30,000 more jobs in the next few years, on top of job cuts already announced this year, the Crown corporation said on Tuesday.
Chief Financial Officer Rindala El-Hage called Canada Post “effectively insolvent” at the corporation’s annual public meeting on Nov. 18, revealing that its operating loss for 2025 had surpassed $1 billion by the third quarter, with a $541 million loss in the most recent quarter alone — described as the largest quarterly loss in the company’s history.
El-Hage attributed the losses in part to ongoing labour disruptions and uncertainty, which have affected operations and revenue.
Canada Post’s financial update also referenced the impact of a postage price increase implemented earlier in the year, though the full effect on revenue will not be clear until the release of the complete third-quarter report.
Workforce reductions through attrition, voluntary departures
President and CEO Doug Ettinger said that Canada Post needed to become a “leaner organization.” He indicated that the corporation anticipates more than 16,000 employees will retire or leave by 2030, with another 14,000 departures expected by 2035. Ettinger said that workforce reductions would be managed primarily through attrition and voluntary departures, aiming to minimize disruption for employees.
Ettinger also discussed a transformation plan submitted to the federal government the previous week, but noted that details would not be shared with the public until they were finalized. The plan is intended to modernize and streamline Canada Post’s business in response to government calls for sweeping changes, such as potentially ending home delivery and closing some rural outlets.
During the meeting, Ettinger referred to the use of community mailboxes (CMBs) and highlighted the delivery accommodation program, which Canada Post is scaling up. He asserted that CMBs are more convenient for Canadians, though he acknowledged that market research shows a preference for door-to-door parcel delivery. Ettinger also committed to protecting rural, remote, and Indigenous services, stating that each situation would be considered individually.
A notable operational change announced was the extension of delivery standards to between three and seven business days, allowing for increased use of ground transport instead of air. Ettinger claimed that most Canadians wouldn’t notice the change, although he didn’t provide supporting evidence.
Postal union pushes for transparency, public consultation
Ettinger expressed support for a proposal to deregulate the setting of postage rates, suggesting that Canada Post should have more flexibility in rate-setting. The Canadian Union of Postal Workers (CUPW) said in a statement that it wanted a transparent formula tied to inflation and operational costs, along with a five-year plan for increases.
Negotiations between Canada Post and CUPW, supported by federal mediators, remain ongoing. CUPW criticized the lack of public consultation on the transformation plan and raised concerns about the impact of job cuts and service changes on communities. The union also highlighted the need for Canada Post to regain and expand its share of the parcel market.
The annual public meeting made clear that Canada Post faces significant financial and operational challenges, with record losses, looming workforce reductions, and major service changes on the horizon.
