Public service reductions will include senior managers as position notices go out
The federal government plans to cut 30,000 public service jobs. Deputy ministers say letters sent to employees show executives will be affected alongside non-executive staff.
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By Torontoer Staff
The federal government has begun issuing notices as part of its plan to reduce the public service by 30,000 positions. Deputy ministers have told staff that the cuts will affect both non-executive and executive ranks, and department-level targets have been circulated in recent days.
The reductions stem from the Nov. 4 budget, which set a five-year target to recover nearly $60 billion in internal savings and included 1,000 executive positions slated for elimination over two years. The new 30,000 reduction is in addition to an earlier 10,000-person decrease from a 2024 peak.
How the process is unfolding
Letters being sent to employees indicate their positions could be affected, but they do not confirm immediate job losses. Departments have outlined steps that follow those notices, including meetings with branch executives and follow-up e-mails with more details.
Agriculture and Agri-Food Canada, for example, said it would issue 1,043 letters to both executive and non-executive staff. The department, which had 5,690 employees last year, is aiming to cut about 665 positions. Statistics Canada is targeting more than 850 jobs, including roughly 12 percent of its executive ranks.
Unionised workers will be offered a work-force adjustment process, which can include a lump-sum transitional payment or options such as exchanging positions with colleagues who want to leave government. The budget also proposes a $1.5-billion early retirement incentive, but that program will not be available until the budget bill receives Royal Assent, a process that could take weeks or months.
That is yet another complicating factor. Folks don’t know what the early retirement incentive is.
Allen Sutherland, Institute on Governance
Why executives are in the sights
The government points to disproportionate growth in senior management over the past decade. There were 9,340 executives as of last year, up from 6,340 in 2015, a 47 per cent increase. By comparison, non-executive ranks grew from 250,694 to 348,625, a 39 per cent increase.
Former deputy minister Yazmine Laroche said the management structure has become bloated and has created overlap and reduced accountability. She recommended fewer executive levels and said senior ranks at central agencies have expanded too much.
There are too many executive levels. They have five when they don’t need more than three. We have seen consistent growth in the executive ranks over the last 10 years, greater than the non-executive growth.
Yazmine Laroche, former deputy minister
Laroche also expressed sympathy for staff facing uncertainty. "This is a very difficult time," she said. "On the one hand, you are working hard to support government priorities. On the other, you worry about your own job and your future."
What managers and staff can expect next
Managers are juggling two tasks: determining which units will meet reduction targets, and managing the immediate concerns of staff receiving notices. Many managers, including those who are themselves getting notices, are only now learning whether their units face cuts.
It’s not a short process. You’re talking about a marathon right now, not a sprint.
Scott Taymun, recently retired former federal executive
Deputy ministers must also plan without knowing how many people will opt for early retirement, which complicates use of the work-force adjustment process. Benefits paid under that process are recorded as departmental expenses, while the early retirement incentive would be funded through the public service pension fund, a distinction that has drawn criticism from unions.
- Planned reduction: 30,000 positions, announced in the Nov. 4 budget
- Earlier reduction: 10,000 from a 2024 peak
- Executive cuts: 1,000 positions over two years, per the budget
- Executive ranks: 9,340 last year, up 47% since 2015
- Non-executive ranks: 348,625 last year, up 39% since 2015
- Example: Agriculture Canada aims to cut about 665 of 5,690 staff; 1,043 letters issued
Timeline and practical implications
The initial notices mark the start of a prolonged process. Departments will follow with meetings, more detailed notices if positions are selected for elimination, and steps under collective agreements. The early retirement option remains contingent on Royal Assent for the budget bill.
For now, the policy choices and timelines leave managers and staff working through uncertainty. Officials say adjustments will unfold over months as departments translate high-level targets into specific staffing decisions.
public servicefederal governmentjobsbudgetcivil service
