Federal Job Cuts Crisis: How 28,000 Public Service Layoffs Will Impact Every Canadian

Federal Union Warns of Widespread Impact from Public Service Job Cuts

The president of Canada's largest public sector union is sounding the alarm: Canadians won't notice the impacts of federal job cuts until the programs and services they depend on disappear completely.

More than 24,000 federal employees have already received notices that their positions could be eliminated as part of the government's plan to reduce the federal public service by 28,000 jobs by 2029. The Canada Strong Budget 2025 outlines this reduction strategy, calling for 16,000 jobs to be eliminated through workforce adjustments, while another 12,000 positions (including 350 executive roles) will be cut mainly through attrition and early retirement packages.

The Human Cost of Government Downsizing

Public Service Alliance of Canada President Sharon DeSousa describes this as a "stressful time" for union members, emphasizing that all Canadians will be affected by these government cuts.

"You won't know what programs or services are affected until they're gone," DeSousa warns. "Often that's when the complaints come in and then they demand that the government staff up. We saw this with cuts previously to Passport Canada, to Employment Insurance programs and Canada Revenue Agency. Next thing you know services drop to four per cent, there's lineups down the street and people are depending on services and they don't get them."

Specific Department Impacts Revealed

Recent data from the Treasury Board of Canada Secretariat shows the breakdown of planned cuts across 24 core departments:

• 8,230 jobs and 425 management positions will be eliminated through workforce adjustments
• 7,762 positions will be cut through attrition and early retirement
• Health Canada plans to cut 931 employees and 39 executives
• Employment and Social Development Canada will cut 931 employees and 39 executives
• Statistics Canada will lay off 764 employees

DeSousa highlights the particularly concerning cuts at Health Canada, noting that these involve public servants who oversee health products and food brands.

"That means it will weaken our oversight of pharmaceutical drugs and health products on our shelves," she explains. "Another example is emergency coordination - half of the staff of the government's operations centre received notices for their positions. That reduces Canada's ability to monitor, respond, and coordinate response to natural disasters and national emergencies."

The Stress of Uncertainty

With more departments expected to issue layoff notices in the coming weeks, DeSousa describes a "very stressful time" for employees who must continue working while facing job uncertainty.

"Not only are they required to make sure that these programs run and these services are delivered, but now they have to deal with the additional stress of not knowing whether or not they have a job," she says.

Alternative Cost-Saving Solutions

The union argues there are better ways to achieve savings without cutting essential services. DeSousa points to contractor spending and office space costs as areas where the government could find significant savings.

"If the government embraced remote work, there is a cost saving by getting rid of really expensive lease holds, as well as buildings that should have been decommissioned long ago," she suggests. "So, there are options available to the government to make sure that people who reside in Canada do not lose the services that they depend on."

Early Retirement Incentive Program Details

The federal government has introduced a new Early Retirement Incentive program as part of its workforce reduction strategy, sending information to approximately 68,000 federal public servants in December.

However, DeSousa notes there remains "a lot of confusion" about how this program will actually work, with many details still unclear two months after the announcement.

Eligibility Requirements

According to government documentation, the program would allow eligible employees to retire with an immediate pension based on years of service with no reduction for early retirement. The eligibility criteria are divided into two groups:

Group 1: Members who joined the public service pension plan on or before December 31, 2012, who:

• Are at least 50 years old
• Have at least 2 years of pensionable service
• Have at least 10 years of employment in the public service

Group 2: Members who joined the public service pension plan on or after January 1, 2013, who:

• Are at least 55 years old
• Have at least 2 years of pensionable service
• Have at least 10 years of employment in the public service

The government states that the application window will open within 120 days of the legislation coming into force, with approved employees required to retire within 300 days of that date.