Canada Post has begun cutting management positions as part of a major restructuring effort to address mounting financial losses and an escalating labour dispute with postal workers, as per a CTV News report.
In an internal memo to employees, president and CEO Doug Ettinger said the layoffs are part of a broader corporate-wide plan to “better align our management team with the future needs of the organization.” He acknowledged the difficulty of the decision, noting that such measures “are never taken lightly.”
The company confirmed it has eliminated some positions but declined to share how many people were affected. The Toronto Star first reported on the job cuts.
The downsizing follows a series of federal directives aimed at reshaping the Crown corporation’s operations. Government Transformation Minister Joel Lightbound recently announced a package of reforms to address what he called the “existential” challenges facing Canada Post, describing the organization as “effectively insolvent.”
Under the government’s plan, Canada Post must reduce its management and overhead costs by at least 15 percent. Other changes include new delivery standards for letter mail and the lifting of long-standing moratoriums on both community mailbox conversions and rural post office closures.
The announcement has further strained relations with the Canadian Union of Postal Workers, which represents about 55,000 employees. The union responded by launching a nationwide strike earlier this month before shifting to rotating job actions on October 9. Both sides are expected to return to the bargaining table this week.
Ettinger said the company will continue to manage its workforce primarily through attrition while maintaining an external hiring freeze. “We need to ensure our costs better align to our financial realities,” he wrote, adding that the organization will become “leaner at all levels.”
Canada Post has lost more than $5 billion since 2018 and expects another $1.5 billion shortfall next year. Lightbound said Canadians have already contributed $1 billion in public funds this year to keep operations running, emphasizing that reform is necessary to put the postal service on a sustainable financial path.
Canada Post said it will present a detailed plan to the federal government in the coming weeks outlining how it intends to restore long-term stability while continuing to provide essential services across the country.
