Carney government begins public service layoff notices as departments prepare cuts
At least 18 federal departments have told workers they could face layoffs as Ottawa moves to cut nearly $60 billion over five years. More notices are expected.
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By Torontoer Staff
The Carney government has begun issuing layoff notices across the federal public service, with at least 18 departments informing employees they could be affected. The notices are the first concrete signs of a plan in last fall’s budget to trim nearly $60 billion in federal spending over five years.
Ottawa is targeting a smaller public service, aiming to reduce roughly 28,000 positions from 2025 levels to reach about 330,000 employees. The government says it will use a mix of attrition, voluntary exits and layoffs to meet that goal, and departments are executing their own plans.
Which departments have issued notices
Public service unions and departmental sources provided data to the Star showing variation in how the process is unfolding. Some departments have provided specific numbers, others have only said employees will be informed soon.
- Professional Institute of the Public Service of Canada (PIPSC) reported 1,516 of its members were notified in the past year that their jobs could be affected.
- Statistics Canada announced about 850 job cuts and plans to reduce its executive team by 12 per cent; officials said affected employees will be told within the next two weeks.
- Natural Resources Canada notified roughly 700 employees in December that they could be impacted, linked to a plan to eliminate 400 positions by 2028-29.
- Public Service and Procurement Canada told its nearly 19,000 employees that those affected by cuts will be informed this week, without specifying numbers.
- Other departments with internal notifications include Shared Services Canada, the Department of Finance and the Canada Revenue Agency.
Scale, targets and exceptions
The staffing reductions stem from Budget 2025, which proposed substantial spending restraint while reallocating funds to defence, housing and trade-related infrastructure. The government has asked most federal departments and agencies to reduce overall spending by 15 per cent.
- Targeted reduction: about 28,000 positions from 2025 levels.
- Target workforce size: roughly 330,000 employees.
- Spending cut target: 15 per cent for most departments.
A list of exceptions was released for agencies deemed critical or sensitive. Departments excluded from the sweeping 15 per cent requirement include National Defence, the Royal Canadian Mounted Police, the Canada Border Services Agency, the Canadian Security Intelligence Service, the Communications Security Establishment, the Department for Women and Gender Equality, Indigenous Services, Crown-Indigenous Relations and a number of research agencies.
How the reductions will be implemented
Implementation is being handled at the departmental level, which has produced uneven messaging and timelines. Some departments have moved to notify affected employees, while others are still finalizing who will receive notices.
Ottawa has signalled efforts to limit harm to services and staff. Measures described in the budget include a proposed early retirement program intended to encourage voluntary departures. The government is also expected to clarify soon whether it will increase mandatory in-office days for federal workers, a change that unions have criticised.
Unions raise concerns about process and impact
This is just a dark cloud over them, and I think it’s a dark time for the federal public service. It’s going to cause generational damage to the public service.
Sean O'Reilly, president, Professional Institute of the Public Service of Canada
Labour leaders say the piecemeal approach is creating high anxiety among public servants. PIPSC described the period as a 'very anxious time' and criticised the lack of co-ordination across departments.
Unions have also warned the cuts could undermine key federal functions. PIPSC highlighted risks to Statistics Canada, which produces the census, the Consumer Price Index and workforce surveys. Union officials said reducing capacity at the agency could affect data quality, with consequences for policy and business planning.
What happens next
Departments are expected to continue issuing notices in the coming weeks as they finalise plans. The Treasury Board of Canada Secretariat declined to provide a total count of departments that have delivered notices or the current number of affected employees, saying it is in the process of informing staff whose positions are affected.
For employees, the immediate steps will include receiving formal notifications and information on options such as redeployment, voluntary departure programs or severance. For the public, the timeline and scope of service impacts will depend on how each department implements its reductions.
The unfolding process will be closely watched by unions, parliament and stakeholders across the economy, as Ottawa balances fiscal restraint with commitments to essential programs and services.
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