Treasury Board minister silent on details of plan to shrink federal public service
Treasury Board President and Brampton MP Shafqat Ali says the federal government has not yet finalized key details of its plans to reduce the size of the public service and increase in-office work for federal employees.
In a recent interview with The Canadian Press, Ali said the government is still working through its workforce adjustment strategy and return-to-office framework, even as departments prepare for potential job cuts.
Hundreds of federal employees have already been notified they could be affected as Ottawa moves to shrink the public service. Many departments have told staff that further information on reductions will be provided in the new year.
The federal government is aiming to reduce program and administrative spending by about $60 billion over the next five years as part of what it describes as a “comprehensive expenditure review.” The most recent federal budget said the process will include restructuring operations, consolidating internal services, and using workforce adjustments and attrition to bring the public service to what it calls a more sustainable size.
Ali declined to say how many employees have already been told they will lose their jobs, or how many more could be affected in the coming months.
“I believe this is the best public service we have in the world, and I want to be mindful of the livelihood of the people,” he said.
Ottawa plans to reduce the federal public service by roughly 40,000 positions from its peak of about 368,000 employees in 2023–24. Approximately 10,000 jobs have already been eliminated over the past year.
The plan also includes cutting 1,000 executive positions over the next two years and reducing spending on management and consulting services by 20 per cent over three years.
Ali said the government’s priority is to find savings while redirecting resources to areas it considers critical for Canadians, including housing construction, national defence, and the RCMP.
He added that nearly 68,000 public servants who may qualify for an early retirement program have received letters outlining the option. The government plans to assess how many employees choose early retirement before proceeding with broader workforce adjustments.
Ottawa has said the goal is to increase attrition and limit layoffs among younger workers by allowing eligible employees to retire earlier without pension penalties. The budget indicated the early retirement program could begin as soon as January, but legislation is required. Ali did not provide a timeline for when that legislation might be introduced.
The minister also offered few details on the government’s return-to-office plans, saying discussions are ongoing and “nothing has been finalized.”
Earlier this month, Prime Minister Mark Carney said his government’s approach to increasing in-office work would come into “sharper view” in the coming weeks. He noted that in-office requirements would likely vary based on job responsibilities and seniority.
Remote work has been a persistent issue within the federal public service since the COVID-19 pandemic forced most employees to work from home in 2020. As restrictions eased, Ottawa began phasing in mandatory office attendance in 2023. Current rules, in effect since September 2024, require most public servants to work in the office at least three days per week, with executives required to be in-office four days a week.