Hundreds of Public Service Workers Warned of Job Cuts Amid Federal Government Layoffs

Multiple federal departments issue notices as the government moves to shrink the size of the public service.

Hundreds of federal workers have been warned that their jobs may be eliminated as the government proceeds with its plan to reduce the size of the public service.

The Public Service Alliance of Canada (PSAC) confirmed Friday that 219 of its members at Natural Resources Canada received notices this week indicating their jobs might be cut. Separately, the Professional Institute of the Public Service of Canada reported that approximately 200 of its members at the same department also received similar notices.

Other groups receiving notices include:

• Public Service Commission of Canada: 109 people

• Crown-Indigenous Relations and Northern Affairs Canada: 92 staff members

• Department of Finance: 74 staffers

Expenditure Review and Reduction Targets

Ottawa is implementing its Comprehensive Expenditure Review to cut approximately $60 billion in program spending and administrative costs over the next five years. The latest federal budget confirmed this exercise will involve “restructuring operations and consolidating internal services,” along with “workforce adjustments and attrition” to return the public service to “a more sustainable level.”

The government intends to eliminate about 40,000 public service jobs from the 2023-24 peak of 368,000 positions. Around 10,000 jobs have already been cut over the past year. The plan includes reducing 1,000 executive positions and a 20% cut to spending on management and consulting services over the next few years.

PSAC has issued a warning that job losses at Natural Resources Canada could “severely” weaken Canada’s ability to responsibly manage its energy and natural resources.

Departments Proceed with Adjustments

Devin Baines, a spokesperson for Natural Resources Canada, confirmed the department is moving forward with savings outlined in Budget 2025. Baines emphasized that receiving a letter is merely the start of a multi-month process allowing employees to explore options such as internal transfers, early retirement, or external employment.

“In the end, Natural Resources Canada would anticipate that only a small number of those who receive letters would leave involuntarily,” Baines stated.

Employment and Social Development Canada (ESDC) is also planning workforce trimming. ESDC spokesperson Mila Roy confirmed that an adjustment in staffing levels, including permanent positions, “will be required.” Roy noted that a workforce adjustment process and executive reduction will launch in January 2026, aiming to achieve targets by the end of 2028–29, while prioritizing attrition to minimize the impact on employees.

Early Retirement Incentive Launched

Earlier this week, the federal government began sending letters about its planned one-year early retirement program to nearly 68,000 eligible public servants. The program is designed to boost attrition and protect younger workers by offering voluntary early retirement without incurring a pension penalty.

Though the Treasury Board stated that acceptance of applications is not guaranteed, the government is moving to implement the program as soon as legislation is passed in the new year.

Mohammad Kamal of the Treasury Board stressed that workforce reductions will be managed to the greatest extent possible through attrition and voluntary departures.