Thousands of federal workers get workforce adjustment notices as Ottawa pursues cuts
Unions say thousands of public servants received workforce adjustment notices after the federal budget, with concerns about outsourcing and limited transparency.
Copy link
By Torontoer Staff
Thousands of federal public servants have been told their roles may be affected by workforce adjustments as Ottawa moves forward with spending cuts outlined in the recent budget. Unions report hundreds of notices were issued last week alone, and say the measures are creating uncertainty across multiple departments.
The notices do not guarantee job losses, but they signal potential layoffs as the government seeks to reduce program and administrative costs by roughly $60 billion over the next five years through a comprehensive expenditure review.
How many workers were notified
The Public Service Alliance of Canada said it received 1,775 workforce adjustment notices last week, and 2,273 since the federal budget was released in November. The Professional Institute of the Public Service of Canada reported 1,849 of its members received notices last week. The Canadian Association of Professional Employees said more than 2,800 of its members have been served notices since November, including about 1,900 at Statistics Canada.
Departments and services affected
Notices have touched staff across several departments and agencies. Unions identified Public Services and Procurement Canada, Shared Services Canada, Statistics Canada, the Treasury Board Secretariat, Natural Resources Canada, Transport Canada, the Privy Council Office, and others as places where members received notices.
- Statistics Canada: roughly 850 job cuts announced and a 12 per cent reduction in its executive team
- Public Services and Procurement Canada, Shared Services Canada, Treasury Board Secretariat: multiple members notified
- Other federal departments named by unions: Natural Resources Canada, Transport Canada, Immigration, Refugees and Citizenship, Environment and Climate Change, Employment and Social Development
Union criticism and worker impact
Unions have criticised the pace and transparency of the process. They say many employees are receiving notices with little detail about which roles or services will be cut, and that the uncertainty is affecting mental health and morale.
We are hearing directly from members that consultants are still working alongside employees who received layoff notices this week. That raises serious questions.
Sean O'Reilly, president, Professional Institute of the Public Service of Canada
It’s impacted our members, their mental health, they don’t know if they’re going to be next. It’s also a scary time for those who reside in Canada, because if you’re dependent on those services, you don’t know how you’re going be affected, and that’s not fair.
Sharon DeSousa, national president, Public Service Alliance of Canada
Outsourcing and government spending
Unions point to growing outsourcing as a concern. Government records show more than $19 billion was spent on external professional and special services in 2024-25, up nearly $2 billion from the previous year and about $8.5 billion since 2020. Unions say employees being served notices while consultants remain on contract undermines the rationale for workforce reductions.
Planned cuts and programs to ease transitions
The government plans to reduce public service staffing by about 40,000 positions from a peak of 368,000 in 2023-24. About 10,000 jobs have already been eliminated. The plan also includes cutting 1,000 executive positions over two years and reducing spending on management and consulting services by 20 per cent over three years.
To increase attrition and limit involuntary layoffs, the government has sent letters about an early retirement program to nearly 68,000 public servants who may be eligible. The one-year early retirement incentive is intended to encourage voluntary departures without pension penalties and could be implemented imminently.
What comes next
Workforce adjustment notices inform employees their positions may be impacted, but they do not specify how many actual layoffs will follow. The Professional Institute of the Public Service of Canada has warned more notices are expected in the coming weeks as the comprehensive expenditure review continues.
Statistics Canada said it will notify affected employees within the next two weeks. Several other departments signalled late last year that they would provide more detail on cuts this month. Unions say they will continue to press the government for clearer information and to protect jobs and services where possible.
For public servants, the immediate questions are which roles will be targeted and how the planned reductions will affect core services. For Canadians who rely on federal programs, the concern is how those services will be sustained while the government reduces administrative and program spending.
The unions’ figures and government spending data paint a picture of a public service in transition. As the review unfolds, more concrete details on job impacts, timelines and the scope of the early retirement program are expected.
public servicefederal governmentlayoffsunionsbudget
