Federal Job Cuts Alert: 12,000+ Positions at Risk in Canada's Public Sector

Federal departments and agencies across Canada are preparing to cut more than 12,000 full-time equivalent positions over the next three years as part of the Carney government's spending review. This significant reduction is outlined in plans released for the 2026-27 fiscal year, aiming to meet government cost-cutting targets by shedding billions of dollars.

Understanding the Job Cuts

Multiple part-time positions can make up one full-time equivalent position, making the actual number of affected jobs potentially higher. Rola Salem, spokesperson for the Treasury Board of Canada Secretariat, explained that departments were required to include details about savings for each fiscal year until 2028-29, including how savings would be achieved and the number of reductions in full-time equivalent positions.

Major Departments Affected

Among the expected job losses are:

• 1,793 positions at Public Services and Procurement Canada
• 900 jobs at Statistics Canada
• 942 positions at Health Canada

While some departments offered only vague commitments to "streamline" services or "modernize" operations, others provided more concrete details of their plans.

Specific Agency Plans

Canadian Space Agency: Plans to terminate work on the LEAP Lunar Rover Mission.

Canada Revenue Agency: Winding down business units no longer connected to government priorities, including those that processed the Digital Services Tax and consumer carbon pricing.

Canadian Food Inspection Agency: Reducing "non-core research activities" and consolidating laboratory services to focus on essential testing. Also decommissioning some vehicle washing stations and winding down functions related to health risks from pet trade.

Environment and Climate Change Canada: Reducing the Low Carbon Economy Fund.

Agriculture and Agri-Food Canada: Winding down programs outside its core mandate, like the Agricultural Climate Solution Living Labs program.

Department of National Defence and Canadian Armed Forces: Retiring selected fleets nearing end of service life and selling or leasing "underutilized, obsolete or surplus" properties.

Library and Archives Canada: Gradually reducing Access to Information and Privacy functions and discontinuing funding for the Documentary Heritage Communities Program.

Public Services and Procurement Canada: Winding down activities of the Canada General Standards Board and reducing funding for Laboratories Canada.

Efficiency Measures and Technology Integration

Several departments — including Shared Services Canada, the Department of Justice, Public Services and Procurement Canada and Public Safety Canada — outlined plans to use artificial intelligence to increase efficiency or improve service delivery.

Transparency Concerns and Parliamentary Review

David McLaughlin, former president and CEO of the Institute on Governance, noted that the plans offer "broad strokes" of the spending review impacts but lack detailed information about service impacts on specific demographics or regions.

Michael Wernick, former clerk of the Privy Council, said the departmental plans "set the table" for parliamentary review, with opposition parties expected to seek more details during committee meetings.

Conservative MP and Treasury Board critic Stephanie Kusie expressed concern about the lack of clear roadmaps, stating: "Even though there is a decrease in the full-time equivalents, we're still seeing an increase in spending."

Union Response and Public Service Impact

Federal unions are sounding alarms over the planned cuts. Public Service Alliance of Canada national president Sharon DeSousa called the cuts an "attack on the public service itself," warning that eliminating thousands of jobs weakens programs Canadians rely on.

Secretary of the Treasury Board Bill Matthews told the House committee on government operations that departments were told to target programs that were underperforming, overlapped with other programs, or were not aligned with government priorities.