Thousands of federal public servants across Canada have received notices warning their jobs may be affected by upcoming cuts, as the federal government moves ahead with a sweeping effort to reduce spending and shrink the size of the public service.
The Public Service Alliance of Canada (PSAC) said 1,775 of its members received workforce adjustment notices last week alone, bringing the total to 2,273 since the federal budget was released in November. The affected employees work across departments and agencies including Public Services and Procurement Canada, Shared Services Canada, Statistics Canada and the Treasury Board Secretariat.
The Professional Institute of the Public Service of Canada (PIPSC) reported that 1,849 of its members received notices last week. Its president, Sean O’Reilly, criticized the cuts, questioning why layoffs are occurring while federal spending on consultants continues to rise.
Government records show Ottawa spent more than $19 billion on external professional and special services in 2024–25, nearly $2 billion more than the previous year and about $8.5 billion more than in 2020.
The Canadian Association of Professional Employees said more than 2,800 of its members have received notices since November, including over 1,900 at Statistics Canada. Other affected departments include Natural Resources Canada, Transport Canada and the Privy Council Office.
Workforce adjustment notices do not guarantee layoffs, but the government has said it plans to cut roughly 40,000 public service jobs from a peak of 368,000 in 2023–24. About 10,000 positions have already been eliminated. The plan also includes reducing executive positions by 1,000 over two years and cutting management and consulting spending by 20 per cent over three years.
Ottawa is also offering an early retirement program to boost attrition. Nearly 68,000 public servants have received letters outlining the voluntary option, which would allow eligible workers to retire without pension penalties. The government says it hopes this approach will limit layoffs, particularly among younger employees.
PSAC national president Sharon DeSousa said uncertainty around the cuts is taking a toll on workers and raised concerns about a lack of transparency.
“It’s impacting our members and their mental health,” DeSousa said, adding that the union will continue to push back against job losses and service reductions.
Statistics Canada has already confirmed plans to cut about 850 positions and 12 per cent of its executive team, while several other departments have told staff more details on job reductions are expected this month.