Ottawa will reduce the federal public service by about 40,000 positions as part of $60 billion in program and administration cuts over the next five years while the Bank of Canada plans a 10% staff reduction.
The internal message frames Budget 2025 as built on new investments and “a new way for government to invest designed to incent the private sector to step up to create good jobs for Canadian workers.” It outlines “a new industrial growth policy for the country based on major projects, defense investments, housing, climate policy, and the diversification of trade around the world.”
“Spend less to invest more,” the memo states, adding that a comprehensive review of expenditures launched in the summer is now complete.
As a result, “the Government has decided to reduce program spending and administration costs by about $60B over the five years of the Budget framework.” The memo warns the number is “a big number” that will affect programs and personnel. It says the plan “will involve reducing a number of programs, limiting the scope of some and terminating others outright.”
“In all, the public service will need about 40,000 fewer people, including some reductions already underway,” the memo wrote.
The memo also acknowledges the human impact. “That number has real consequences for people who serve their country and for their families. I am not going to try to diminish those consequences. They are real.”
Separate from the core public service measures, the central bank is also set to shrink with Bank of Canada allegedly cutting 10% of staff.
Information for this briefing was found via the sources mentioned. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
One Response
Well at least we didn’t have PP in there insisting on more program cuts to the tune of his magin 42B. And would his party stop calling this an “extra tax” on Canadians. God.