Multiple federal departments will begin informing employees in January whether their positions face elimination as Canada’s government implements a sweeping workforce reduction plan announced in its 2025 budget.
The government plans to eliminate 28,000 positions and achieve $60 billion in savings by 2029 under its Comprehensive Expenditure Review. Officials aim to reduce total federal employment from a March 2024 peak of 367,772 workers to 330,000 by fiscal year 2028-29, according to Budget 2025 documents.
Global Affairs Canada will notify affected employees between January 12 to 31, department officials confirmed Tuesday. Public Services and Procurement Canada, Fisheries and Oceans Canada, Employment and Social Development Canada, and Statistics Canada have also announced January notification timelines.
Natural Resources Canada has already begun the process, sending letters to 700 employees in December warning their positions may be eliminated. The Public Service Alliance of Canada reports additional early notifications went to workers at the Public Service Commission, Crown-Indigenous Relations and Northern Affairs Canada, and the Department of Finance.
The government sent early retirement program information to approximately 68,000 eligible public servants in early December. The voluntary initiative targets workers aged 50 and older with at least 10 years of employment who could retire without the standard pension reduction.
The proposed Early Retirement Incentive program requires parliamentary approval before implementation, with a target date of January 15, 2026. Normally, federal employees retiring early face a 5% annual pension reduction for each year before standard retirement age.
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Treasury Board officials said that workforce reductions will prioritize attrition and voluntary departures. The plan includes eliminating 16,000 positions through direct workforce adjustments and 12,000 through attrition and early retirement.
Federal employment dropped by approximately 10,000 positions over the past year, bringing the March 2025 total to 357,965 employees.
PSAC National President Sharon DeSousa said that the cuts would lead to longer wait times for government services, including passport processing, employment insurance claims, and inquiries to the Canada Revenue Agency. Union officials criticized the early retirement program’s funding structure, which draws from the Public Service Pension Fund rather than general revenue.
The government has not specified which programs or services will face reductions, though Budget 2025 directs departments to restructure operations and consolidate internal services while maintaining what officials call essential services and business continuity.
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