Ottawa– Canada Post has announced layoffs affecting an unspecified number of management positions as part of an ongoing corporate restructuring effort aimed at modernizing operations and reducing costs.
In an internal message to employees, CEO Doug Ettinger said the move reflects the need to adapt to changing consumer habits and financial realities.
“Canadians have changed the way they use the postal service, and we must change with them,” Ettinger wrote. “We need to ensure our costs better align to our financial realities, which means our organization will be leaner at all levels going forward.”
The restructuring includes a hiring freeze and attrition measures to minimize direct layoffs where possible. Canada Post says the changes are designed to align management teams with the evolving needs of the organization as it continues a major transformation to strengthen service delivery.
The decision comes as the postal service struggles with mounting financial losses and ongoing labour disputes. Approximately 55,000 unionized workers with the Canadian Union of Postal Workers (CUPW) are currently engaged in rotating strikes, as contract negotiations have stalled after nearly two years.
CUPW president Jan Simpson told a parliamentary committee that recent federal government reforms to Canada Post’s mandate — including plans to expand community mailboxes, adjust delivery standards, and close some post offices — have interfered with collective bargaining.
Procurement Minister Joël Lightbound defended the federal intervention, saying the Crown corporation’s financial condition left no time to delay reforms. Canada Post, which received a $1 billion federal bailout earlier this year, has 45 days to submit a plan to “right-size” its operations in response to the government’s directive.
The company’s most recent offer to the union includes a 13.59% wage increase over four years, though the CUPW continues to push for a 19% raise and stronger job security provisions.