Hundreds of federal public servants have been warned their jobs may be eliminated as the federal government advances its plan to significantly shrink the public service over the next five years.
The Public Service Alliance of Canada said Friday that 219 employees at Natural Resources Canada received notices this week indicating their positions may be cut. Similar warnings were issued to 109 workers at the Public Service Commission of Canada, 92 at Crown-Indigenous Relations and Northern Affairs Canada, and 74 at the Department of Finance.
The notices come as Ottawa moves to reduce program spending and administrative costs by roughly $60 billion through its Comprehensive Expenditure Review. The 2025 federal budget signaled deep structural changes, including consolidating internal services, reducing management layers, and trimming the federal workforce to what it describes as a “more sustainable level.”
The government plans to eliminate about 40,000 public service positions from a high of 368,000 employees recorded in 2023–24. Approximately 10,000 jobs have already been cut within the past year. The plan also calls for reducing 1,000 executive roles over two years and reducing spending on management and consulting services by 20 per cent over three years.
The Public Service Alliance of Canada warned that layoffs at Natural Resources Canada could “severely” undermine the government’s ability to responsibly oversee the country’s energy and natural resource sectors.
Devin Baines, a spokesperson for Natural Resources Canada, said the department is simply beginning the process of implementing savings outlined in Budget 2025. He emphasized that receiving a notice does not guarantee job loss. The process, he said, spans several months and allows employees to explore options such as transfers to other departments, early retirement, or employment outside the public service. “In the end, Natural Resources Canada would anticipate that only a small number of those who receive letters would leave involuntarily,” he said.
Employment and Social Development Canada is also preparing for staffing reductions in line with federal budget targets. Department spokesperson Mila Roy said a workforce adjustment, including reductions in permanent positions, will begin in January 2026 and continue through 2029. She added that attrition will be heavily relied upon to minimize disruption. “The goal will be to ensure continued employment for those who want to remain in the public service,” Roy said.
As part of the government’s strategy to avoid widespread layoffs, nearly 68,000 public servants received information this week about a proposed early retirement program. The voluntary initiative would allow eligible employees to retire up to one year earlier than normal without pension penalties. The government hopes the incentive will encourage departures from senior staff rather than younger workers, though legislation is still required before the program can be implemented.
A digital copy of the notice, shared with The Canadian Press, said no action is required from employees at this stage. It also stressed that participation will not be guaranteed, as departments must preserve essential services and operational continuity.
Questions remain about the timing of job cuts. Mohammad Kamal, director of communications for the Treasury Board president, did not clarify whether departments will move ahead with layoffs before determining uptake in the early retirement program. He said workforce reductions will be guided as much as possible by voluntary departures and internal reassignment.