Ottawa – The federal government is set to reduce its workforce by over 12,000 full-time equivalent positions within the next three years. This decision is a result of the Carney government's comprehensive spending review aimed at trimming billions of dollars from the federal budget. The cuts are detailed in the 2026-27 plans released by various departments and agencies, outlining their strategies to achieve the mandated savings.
The Treasury Board of Canada Secretariat confirmed that departments were instructed to provide detailed plans for achieving savings through the 2028-29 fiscal year. These plans include descriptions of how the savings will be realized, the number of full-time equivalent positions to be eliminated, and any measures not previously included in the budget. While some departments have offered specific details, others have remained vague, promising to "streamline" services or "modernize" operations.
Specific job losses include 1,793 positions at Public Services and Procurement Canada, 900 at Statistics Canada, and 942 at Health Canada. The Canadian Space Agency will terminate the LEAP Lunar Rover Mission. The Canada Revenue Agency plans to discontinue business units no longer aligned with government priorities, such as those handling the Digital Services Tax and consumer carbon pricing. The Canadian Food Inspection Agency will reduce non-core research and consolidate laboratory services.
Unions are raising concerns about the impact of these cuts on public services and federal workers. Sharon DeSousa, national president of the Public Service Alliance of Canada, described the cuts as "an attack on the public service itself". The government aims to achieve further efficiencies through the use of artificial intelligence in departments such as Shared Services Canada, the Department of Justice, and Public Safety Canada.
