Thursday, January 1, 2026

Carney Says Public Service Cuts Will Come Through Attrition

Prime Minister Mark Carney said Sunday that federal public service cuts will happen “naturally through attrition,” as his government pursues spending reductions of up to 15% over three years that could eliminate tens of thousands of jobs and slash up to $19 billion in program funding.

Carney made the comments to reporters at a housing announcement in Ottawa when asked about potential job cuts. The approach differs from his election campaign promise of “caps, not cuts” to the public service.

Michael Wernick, former clerk of the Privy Council, told CBC News that relying on attrition “doesn’t make any sense as a management strategy.”

According to government data, federal employment expanded from 257,034 positions in 2015 to 357,965 in 2025 — an increase of more than 100,000 workers over the decade. More than 10,000 positions were eliminated in 2025 alone.

The Public Service Alliance of Canada, representing about 240,000 government workers, said reducing positions through attrition will still hurt essential services by leaving fewer staff to handle the same workload. Union leaders said they were not properly consulted about the government’s spending restraint plans.

Ministers must present savings proposals by late August as part of a comprehensive expenditure review. The cuts aim to free up resources for housing, defense, and infrastructure spending.

Parliamentary Budget Office projections suggest the reductions could affect up to 57,000 positions by 2028, with agencies like the Canada Revenue Agency and Employment and Social Development Canada facing the deepest cuts.



Information for this story was found via the sources and companies mentioned. The author has no securities or affiliations related to the organizations discussed. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.

Video Articles

The Monetary System Is Cracking – Gold Is the Pressure Valve | Ross Beaty – Equinox Gold

Heliostar Metals: The Cerro del Gallo PFS

Aura Minerals: Speedrunning The Era Dorada Project

Recommended

Silver47 Reports Discovery Of FOMO Zone At Red Mountain After Sampling 1,793 g/t Silver Equivalent

When A Shut-Down Mine Starts Making Sense Again | Selkirk Copper

Related News

Canada Ends Federal Oversight In Favor Of Faster Project Approvals

Canada has officially scrapped its federal review process for major infrastructure and mining projects. Prime...

Tuesday, March 25, 2025, 12:54:00 PM

Carney Orders 7.5% Cut as First Step in Multi-Year Federal Spending Trim

Finance Minister François-Philippe Champagne on Monday told every federal minister to “identify ambitious savings proposals”...

Tuesday, July 8, 2025, 11:31:00 AM

Liberal Exodus: Who Might Be Exiting Carney’s Government?

Rumours of multiple Liberal MPs leaving caucus have converged into a single operational risk for...

Thursday, November 27, 2025, 11:24:00 AM

Canada Launches Sweeping Review to Cut Federal Red Tape

Canada’s government launched a comprehensive review of federal regulations Tuesday, aiming to eliminate outdated rules...

Thursday, July 10, 2025, 11:09:00 AM

Kenney Accuses Carney of Contradicting the Constitution on Pipeline Authority

Former Alberta Premier Jason Kenney accused Prime Minister Mark Carney of contradicting Canada’s constitution by...

Monday, June 9, 2025, 10:01:43 AM