Statistics Canada Workforce Cuts: A Deep Dive

Statistics Canada has officially entered its workforce adjustment period, marking a significant shift in the federal public service landscape. The agency is set to cut approximately 850 positions, representing a substantial reduction in its workforce.

The Numbers Behind the Cuts

According to the Professional Institute of the Public Service of Canada (PIPSC), the agency has issued 3,274 workforce adjustment notices to employees. This includes 940 PIPSC members and 350 Public Service Alliance of Canada (PSAC) members who have already received letters informing them their jobs are affected.

Statistics Canada's public service population currently stands at 7,274 as of 2025, up from 5,452 in 2020. The planned cuts represent about 12% of the executive team and a significant portion of the overall workforce.

Union Reactions and Concerns

PIPSC president Sean O'Reilly described this as a "dark time for Canadians," emphasizing that these aren't just abstract cuts from a government balance sheet. "These are real jobs, real expertise and real services at risk," O'Reilly stated in an interview.

PSAC president Sharon DeSousa called the situation "scary," warning that "cutting hundreds of skilled workers puts the quality, timelines and reliability of that data at risk."

The Bigger Picture: Government-Wide Cuts

These cuts at Statistics Canada are part of a broader government initiative to scale back the public service. The Liberal government's "comprehensive expenditure review" aims to reduce the overall public service headcount by approximately 40,000 workers from a peak of 368,000 in 2023-2024.

This represents a reduction of around 10% in the overall public service, with the cuts expected to equate to 16,000 full-time equivalents.

Workforce Adjustment Process Explained

The workforce adjustment process is designed to provide alternative employment opportunities for permanent workers who lose their positions. Affected employees may have opportunities for:

• Alternation (trading places with an employee who wants to leave)
• Competing for other positions within the public service
• Access to early retirement incentives

The government has stated it intends to rely on attrition "to the greatest extent possible" by lowering age eligibility rules for retirement and offering $1.5 billion in incentives.

What This Means for Data and Services

Statistics Canada serves as the "cornerstone" of the public service, according to O'Reilly. The data generated by the agency "underpins evidence-based decision-making across government, business and communities."

Unions are concerned that these cuts could impact the quality and reliability of crucial statistical data that informs policy decisions at all levels of government.

Looking Ahead

O'Reilly noted that fallout from the government's spending review will become clearer over the next two to three weeks. The union has been pushing for an overarching breakdown of where cuts will be made, rather than what they describe as the current "piecemeal" approach.

DeSousa urged workers to familiarize themselves with their rights under collective agreements before making any decisions about early retirement or other options.

As Statistics Canada moves through this period of change, the agency maintains it "remains focused on serving Canadians and adapting to future needs."