Canada starts notifying federal workers their jobs may be affected as spending cuts roll out
- By Tahani Elghazaly
- Published
Federal departments in Canada have begun notifying employees that their positions may be affected as the government implements Budget 2025’s “comprehensive expenditure review,” a multi-year effort to reduce program and administrative spending.
Reports say the review aims to cut roughly $60 billion over five years by restructuring operations, consolidating internal services, and relying heavily on attrition and workforce adjustment measures.
Budget 2025 documents project the federal public service could decline to about 330,000 by the end of fiscal year 2028-29, down roughly 40,000 positions from a peak near 368,000 in 2023-24.
The budget also says the savings identified through the review are expected to contribute to an estimated reduction of about 16,000 full-time equivalents compared with the workforce as of March 2025.
Several departments have told staff that more details will be shared in January 2026. Environment and Climate Change Canada have indicated that employees whose positions may be affected would be notified in mid-January in line with workforce adjustment and career transition provisions.
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Tahani Elghazaly5252 Posts
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