Government eliminating 28,000 jobs over next four years
Federal departments have started notifying public servants that their positions may be affected as Ottawa moves ahead with plans to cut thousands of jobs over the next four years, according to a recent report.
The job‑cut process is now underway across multiple departments as part of the federal government’s commitment in the Canada Strong Budget 2025 to cut 28,000 positions and find $60 billion in savings by 2028‑29, says CTV News.
The broader goal is to reduce the federal public service by about 40,000 jobs through a combination of layoffs, attrition and early retirements, bringing headcount down from a peak of 367,772 employees in March 2024 to roughly 330,000 by the end of the decade.
The federal government's budget will result in federal workforce reductions across Atlantic Canada, but the impact will likely be far less severe than some regional leaders have warned, according to analysis from the Fraser Institute.
Layoffs in federal public sector
Statistics Canada confirmed it will eliminate 850 positions over the next two years, including 100 jobs being cut immediately this week. Shared Services Canada has also started notifying staff.
“We are in the process of notifying employees and executives that their position is affected and may no longer be required,” a spokesperson for Shared Services Canada said in an email to CTV News Ottawa. “We are unable to share the number of employees who will be receiving letters until we have finished this process.”
The number of federal public servants earning more than $150,000 a year has surged over the past five years, according to figures from the Treasury Board of Canada Secretariat (TBS).
The Professional Institute of the Public Service of Canada (PIPSC) said 737 of its members at Shared Services Canada are affected, many in IT roles. The union warned that trimming these positions could jeopardize digital services and cybersecurity.
“Outsourcing core IT functions increases the risk of system outages and service disruptions, delaying access to government websites and services Canadians rely on,” PIPSC said, according to the CTV News report. “Outsourcing cyber protection work can create security gaps and slow responses, increasing the risk of breaches affecting government programs and services.”
Since former prime minister Justin Trudeau came to power in 2015, Ottawa added 108,793 new federal government employees – an increase of 42 per cent, according to a Canadian Taxpayers Federation (CTF) report released in August 2024. And nearly half of Canadians (47 per cent) believe that the number of public sector workers should be reduced.
Here’s a breakdown of of the job cut numbers, as reported by CTV News:
Table 1 – Federal public service (overall)
|
Scope |
Type of change |
Number of positions / employees |
Timeframe |
Notes |
|---|---|---|---|---|
|
Federal public service (overall) |
Planned job cuts |
28,000 positions |
Over next four years (from Canada Strong Budget 2025) |
Part of plan to find $60 billion in savings and reduce overall headcount. |
|
Federal public service (overall) |
Total planned reduction (cuts + attrition + early retirement) |
40,000 jobs |
By 2028–29 |
Reduction from peak of 367,772 employees (March 2024) to about 330,000. |
|
Federal public service (overall) |
Headcount at peak |
367,772 employees |
March 2024 |
Reference point for reduction target. |
|
Federal public service (overall) |
Headcount after initial reduction |
357,965 employees |
As of March 31, 2025 |
Indicates early decline already underway. |
|
Federal public servants (general) |
Early retirement notices issued |
Approximately 68,000 public servants |
Programme timeframe not fully specified |
Notices outline information on the planned early retirement programme. |
Table 2 – Department‑ and agency‑level job‑cut data
|
Department / Entity |
Type of change |
Number of positions / employees |
Timeframe |
Notes |
|---|---|---|---|---|
|
Statistics Canada |
Job cuts |
850 positions |
Over next two years |
Includes immediate cuts this week. |
|
Statistics Canada |
Immediate job cuts |
100 positions |
This week (as of report) |
Part of the 850 total to be eliminated. |
|
Shared Services Canada |
Union‑reported affected members (PIPSC) |
737 members |
Not specified; notifications underway |
Many are IT workers; official affected position count not yet disclosed. |
|
Shared Services Canada |
Notification of affected positions |
Not disclosed |
Process underway |
Employees and executives being told their position “may no longer be required.” |
|
Public Services and Procurement Canada (PSPC) |
Affected notices |
Number not disclosed |
Formal notices Jan. 14–15, 2026 |
All employees pre‑informed that affected staff will receive notices on these dates. |
|
Employment and Social Development Canada (ESDC) |
Workforce adjustment and executive reduction |
Number not disclosed |
Process begins this month; targets by end of 2028–29 |
Will use attrition and workforce planning to minimise impacts and retain employees where possible. |
|
Global Affairs Canada (GAC) |
Affected letters |
Number not disclosed; “significantly more” than positions to be eliminated |
Notifications between Jan. 12 and 31 (year of report) |
Sending more letters to enable voluntary departures and reduce involuntary exits. |
|
Natural Resources Canada |
Employees receiving impact letters |
700 employees |
Letters sent in December |
Letters indicate positions “will or may be impacted.” |
|
Natural Resources Canada |
Jobs to be cut |
Approximately 400 jobs |
Over next four years |
Subset of the 700 notified roles. |
|
Fisheries and Oceans Canada |
Staff to be notified of potential impacts |
Number not disclosed |
Notifications in January |
Positions may be affected by the comprehensive expenditure review. |
|
Environment and Climate Change Canada |
Staff to be notified of potential impacts |
Number not disclosed |
Notifications in January |
Also part of comprehensive expenditure review. |
|
Department of Finance |
Positions with “may be affected” notices |
74 positions |
Not specified |
Reported by unions. |
|
Public Service Commission of Canada |
Positions with “may be affected” notices |
157 positions |
Not specified |
Reported by unions. |
|
Crown‑Indigenous Relations and Northern Affairs |
Positions with “may be affected” notices |
94 positions |
Not specified |
Reported by unions. |
|
Privy Council Office |
Positions with “may be affected” notices |
19 positions |
Not specified |
Reported by unions. |
|
Combined – Fisheries and Oceans Canada; Correctional Service of Canada; Canadian Food Inspection Agency; Canada Economic Development for the Quebec Regions; Atlantic Canada Opportunities Agency |
Projected cuts (full‑time equivalents) |
1,927 FTEs |
Over next four years |
Estimate from Parliamentary Budget Officer’s report. |
