Canada Post to Slash 30,000 Jobs Gradually Over Next Decade

Canada post to slash 30,000 jobs gradually over next decade
Canada post to slash 30,000 jobs gradually over next decade

In response to growing financial losses and systemic problems in its operations, Canada Post intends to lay off 30,000 workers over the next decade. According to the organisation's annual report to Parliament, the decrease in employment will be accomplished through retirements and voluntary departures instead of layoffs.

This decision is in response to Canada Post's far larger pre-tax loss of $1.57 billion for 2025 compared to $841 million the year before. According to CEO Doug Ettinger, the company plans to lay off another 14,000 workers between 2031 and 2035 and another 16,000 by 2030.

Canada Post Reshaping its Delivery System

Changes to Canada Post's delivery methodology are being considered with layoffs. Some places, particularly rural roads, are being considered for a possible slow phase-out of door-to-door delivery by the organisation. Community mailboxes cost $162 per year, but door-to-door delivery costs $284 per location, according to the company's annual report. In the first stage this year, door-to-door service is scheduled to be discontinued for approximately 136,000 addresses. Approximately four million residences will be serviced by community mailboxes during the next five years.

This therefore marks the beginning of a more systemic change in the delivery of mail throughout Canada. When it comes to Canada Post, Ettinger said in his letter, change is never simple. He went on to say that although the need to secure the postal service is acknowledged, some of the modifications will undoubtedly cause individuals to express worry.

Canada Post Revamping its Several Operations

After the federal government relaxed a long-standing moratorium on eliminating rural post offices, Canada Post is now considering cutting service outlets as well. As part of its ongoing attempts to reduce expenses and increase efficiency, the organisation is also considering switching from daily mail delivery to a second-day schedule.

Canada Post is preparing for a long-term reorganisation in response to falling mail volumes and increasing operating expenses with layoffs and service adjustments. In light of the impending changes over the next decade, the organisation must find a way to keep costs down while still providing adequate service, especially to more remote and rural areas.

Quick Shots

•Canada Post to cut 30,000 jobs over 10 years through attrition

•Workforce reduction via retirements and voluntary exits, not layoffs

•Reported pre-tax loss widens to $1.57 billion in 2025

•CEO Doug Ettinger outlines phased job cuts through 2035

•16,000 jobs to be reduced by 2030, 14,000 more by 2035

•Shift in delivery model to reduce operational costs