At its annual public meeting held on Tuesday, Canada Post disclosed its ongoing financial struggles and hinted at significant staff reductions through attrition. The Crown corporation’s chief financial officer, Rindala El-Hage, stated that Canada Post is facing insolvency, with a total operating loss exceeding $1 billion for 2025 and an unprecedented quarterly loss of $541 million before tax.
El-Hage attributed these losses to the prolonged labor dispute with workers, leading to continued uncertainty and disruption. In response to the federal government’s call for drastic changes to stabilize its finances, Canada Post submitted a privatized plan to Ottawa aimed at modernizing and streamlining its postal services.
During the meeting, CEO Doug Ettinger alluded to impending job cuts and outlined the corporation’s strategy to downsize its current workforce of approximately 62,000 employees through retirements and voluntary departures. Ettinger projected that over 16,000 employees would retire or leave by 2030, with an additional 14,000 expected by 2035, emphasizing the need for a leaner organizational structure.
The Canadian Union of Postal Workers (CUPW) strongly criticized Ettinger’s plans, stating that the proposed job cuts would severely impact the communities served. The union called for transparency and consultation with both CUPW and customers before implementing any changes to the postal service.
Additionally, CUPW highlighted the stamp price increase earlier in the year and service expansions as potential solutions for Canada Post to recover its financial losses. Ongoing negotiations between CUPW and Canada Post for a new collective agreement have been in progress for over a year and a half.
In response to the federal government’s proposed changes to mail delivery services, CUPW initiated a nationwide strike in late September, transitioning to rotating strikes by October 11 to restore mail services in most regions. While workers in certain areas have ceased delivering flyers, addressed mail delivery continues.
Canada Post remains optimistic that an agreement will be reached with CUPW as negotiations, facilitated by federal mediators, continue.