After Canada’s Federal Government announced an equally audacious plan to eliminate 40,000 public service jobs. Due to this counting double workers, this reduction in positions will total 368,000 by the end of fiscal year 2023-24. Part of this historic reduction will go towards taking care of business and tightening the budget belt during these tough economic times.
As one piece of these efforts, the Treasury Board announced its plans to cut 1,000 of its executive jobs within two years. Furthermore, the government aims to reduce expenditures for administration and consulting services of 20% over a three-year period. The Comprehensive Expenditure Review seeks to reduce program spending and administrative costs by a staggering $60 billion over five years.
Specific departments will experience notable job losses. The Public Service Commission of Canada expects to eliminate 109 positions as a result. At the same time, Crown-Indigenous Relations and Northern Affairs Canada will cut 92 jobs. The Department of Finance plans to cut 74 positions as well. At the same time, Natural Resources Canada is getting ready to put further proposed savings from Budget 2025 into action.
In the last year, the federal government has already cut 10,000 jobs from the public service. With the province’s looming layoffs, nearly 68,000 government employees may be eligible for a special early retirement incentive. This program could start as soon as January, contingent on passage of some key legislation.
Mohammad Kamal, director of communications for the Treasury Board President Office Office, unveiled their government’s plan for job cuts. They intend to handle these cuts primarily through attrition and voluntary separations.
“These parameters would be designed to maintain essential services and business continuity,” – letter from the Treasury Board.
Natural Resources Canada expects few employees to depart involuntarily once the early retirement letters go out. They are counting on the fact that the majority of staff will want to remain.
“As such, acceptance of an employee’s application to participate would not be guaranteed,” – letter from the Treasury Board.
Mila Roy, a spokesperson for the Minister of Transport’s Department, said that the workforce adjustment process will start in January 2026. This should mean a cut in high level execs.
“In the end, Natural Resources Canada would anticipate that only a small number of those who receive letters would leave involuntarily,” – Devin Baines, spokesperson for Natural Resources Canada.
Even with these reductions Roy observed that even at this time, they are unable to say how many positions will be reduced in the end.
“A workforce adjustment process and a reduction in our executive complement will launch in January 2026 to achieve our targets by the end of 2028—29,” – Mila Roy.
The feds have made the choice to go big on cuts, bowing to relentless fiscal austerity. We believe that this initial step will help to protect and preserve public services for the indefinite future. The actions show a clear desire to continue providing critical services that people rely on, while spending taxpayers’ dollars as efficiently as possible.
“We cannot confirm how many positions will be reduced at this time,” – Mila Roy.
The federal government’s decision to embark on such extensive cuts comes in response to ongoing fiscal pressures and aims to ensure sustainability within public services. The measures reflect a commitment to maintaining essential services while managing costs effectively.
