Canada Post’s financial crisis deepened on Tuesday as its chief financial officer revealed the Crown corporation is “effectively insolvent,” with losses for the first nine months of 2025 surpassing $1 billion — nearly $240 million worse than the same period last year.
At the organization’s annual meeting in Ottawa, CEO Doug Ettinger said Canada Post is preparing for a dramatic workforce reduction, expecting as many as 30,000 employees to leave through retirement or voluntary departures over the next decade. With about 62,000 workers at the end of last year, Ettinger stressed that the corporation will rely on “attrition first” rather than layoffs as it scales down and attempts to modernize operations.
Chief financial officer Rindala El-Hage said the company’s rapidly deteriorating financial position has forced it to rely on almost $1 billion in federal loans to keep operating this year. Declines in traditional letter mail, combined with disruptions from an ongoing labour dispute, have pushed the postal service further into the red.
Ettinger acknowledged that depending on government bailouts year after year is unsustainable. He pointed to changes made in September to Canada Post’s mandate — reforms aimed at giving the corporation more flexibility to adapt to the realities of today’s delivery landscape, dominated by parcels and digital communication.
Earlier this month, Canada Post submitted a restructuring plan to the federal government outlining how it intends to capitalize on those new policy changes. However, details remain confidential as Ottawa reviews the proposal.
The corporation’s challenges reflect a larger industry shift, with declining mail volumes and rising labour costs putting pressure on postal services worldwide.