CRA Job Cuts Alert: Over 450 Positions at Risk as Government Axes Tax Programs

CRA Workforce Faces Uncertainty

More than 450 workers at the Canada Revenue Agency (CRA) have received notices this week that their jobs may be at risk, sparking concerns about the future of public service employment in Canada.

Union Responses and Affected Employees

The Public Service Alliance of Canada (PSAC) reported that 284 of its members at CRA received affected notices on Tuesday, while the Professional Institute of the Public Service of Canada (PIPSC) said 195 of its members received a workforce adjustment notice. According to the Union of Taxation Employees, the government notified employees in four branches that their positions have been identified as affected.

Reasons Behind the Job Cuts

This workforce reduction is largely due to the government eliminating taxation programs such as:

• The Digital Services Tax
• The Federal Fuel Charge
• The Canada Carbon Rebate for individuals and businesses
• The Underused Housing Tax
• The luxury tax on aircraft and vessels

The affected employees work at CRA Headquarters in Ottawa and in regions across the country, creating uncertainty for public servants nationwide.

$1.2 Billion in Spending Reductions

The Canada Revenue Agency's 2026-27 departmental plan reveals the agency is planning $1.2 billion in spending reductions over three years as part of the government's comprehensive expenditure review. The CRA will achieve these reductions by modernizing its administrative approach to enable greater productivity and winding down business units that are no longer connected to government priorities.

Impact on Tax Enforcement

PIPSC warns that workforce cuts at the Canada Revenue Agency will weaken the government's ability to enforce tax laws and recover billions in lost revenue. "These are the people who make sure everyone pays their fair share," PIPSC President Sean O'Reilly said in a statement. "Cutting them doesn't save money. It costs money."

Employee Numbers Projected to Decline

According to the departmental plan, the size of the Canada Revenue Agency will drop from 53,585 employees in 2024-25 to 49,498 employees in 2026-27 and 48,807 employees by 2028-29. The reduction in FTEs between 2026-27 and 2028-29 is primarily due to the decrease or sunsetting of funding to implement and administer various measures announced in federal budgets and economic statements.

Union Opposition and Employee Concerns

The Union of Taxation Employees said the announcement of job cuts "doesn't come as a surprise," noting the program cuts were identified in November's federal budget. "Nonetheless, it is bad news, more potential job losses, and we fully understand that those directly impacted are feeling immense stress and uncertainty about what comes next," said Marc Brière, president of the Union of Taxation Employees.

Our union strongly opposes these potential job losses in the public service.