Several federal departments will begin notifying public servants in January if their positions could be affected by workforce adjustments, as the federal government moves forward with plans to eliminate 28,000 jobs and find $60 billion in savings over the next four years.
The reductions are part of a comprehensive expenditure review outlined in the 2025 federal budget, tabled on Nov. 5. The Liberal government aims to shrink the federal public service by 40,000 positions from its peak of 367,772 employees in March 2024 to about 330,000 by 2028–29. As of March 31, 2025, the federal workforce stood at 357,965 employees.
Under the plan, 16,000 full-time equivalent positions — including 650 executive roles — will be cut directly. Another 12,000 positions, including 350 executive jobs, are expected to be eliminated through attrition and early retirement. The government has said reductions will be achieved through a combination of job cuts, attrition and early-retirement measures, with funding reductions affecting all federal departments.
Notices already issued
Natural Resources Canada (NRCan) confirmed that about 700 indeterminate employees received letters this month advising them their positions “will or may be impacted” by future changes. The department said it plans to eliminate approximately 400 positions by 2028–29.
Federal unions report that notices have already been issued at several departments. The Public Service Alliance of Canada (PSAC) said 219 of its members at NRCan and 74 members at the Department of Finance received notices. The Professional Institute of the Public Service of Canada (PIPSC) said 202 of its members at NRCan were notified.
According to unions, additional notices were sent in December to 157 employees at the Public Service Commission of Canada, 94 employees at Crown-Indigenous Relations and Northern Affairs Canada, and 19 employees at the Privy Council Office.
The Canadian Association of Professional Employees (CAPE) said its members at NRCan, the Department of Finance, and Crown-Indigenous Relations and Northern Affairs Canada were also notified, though it did not specify how many.
“As far as we know, that will be it for 2025,” CAPE said in a statement. “Some other departments have floated that there will be news coming in January, but we don’t yet have details.”
Notices expected in January
Several major departments confirmed that employees will be notified in January if their positions may be affected:
- Public Services and Procurement Canada said staff were informed on Dec. 9 that affected employees would receive formal notices in January 2026. The department said it aims to minimize impacts using attrition and negotiated workforce adjustment provisions.
- Shared Services Canada told employees in a Dec. 3 memo that those impacted by workforce adjustments will be notified in January 2026, with efforts focused on attrition, negotiated provisions and career transition measures.
- Employment and Social Development Canada (ESDC) said a workforce adjustment process and executive reductions will begin in January 2026, though it has not yet confirmed how many positions will be cut.
- Environment and Climate Change Canada said implementation of expenditure review decisions will begin in mid-January, with affected employees notified at that time.
- Fisheries and Oceans Canada confirmed it will begin implementing reductions in mid-January 2026 and has already advised staff to expect further details.
- Global Affairs Canada said it plans to notify affected employees between Jan. 12 and Jan. 31, adding it is committed to transparency with staff and unions.
- Statistics Canada said it is still assessing reduction targets and expects to provide further updates in January.
- Correctional Service of Canada said it is finalizing plans and expects to share information on workforce impacts in the new year.
- Canada Revenue Agency said it is continuing to assess the implications of the budget and expenditure review. The agency last cut up to 280 positions in May.
- Immigration, Refugees and Citizenship Canada said it has not yet informed employees how reductions will be implemented and will provide updates when available.
- Health Canada said no workforce adjustments have been announced and the department is still reviewing its savings targets.
Early retirement notices
In early December, approximately 68,000 federal public servants received early retirement notices as part of the government’s effort to manage reductions through voluntary departures.
“As proposed in Budget 2025, workforce reductions will be managed to the greatest extent possible through attrition and voluntary departures,” a spokesperson for Treasury Board President Ali said. The spokesperson added that the early retirement initiative is designed to provide “clarity and predictability,” with more details to be released later.
The federal government has said it will continue to communicate with employees and unions as departments implement the comprehensive expenditure review over the coming months.