Canada Post Cuts Nearly 50 Jobs Due to ‘Critical Financial Situation’
Canada Post Lays Off Nearly 50 Managers Amid Financial Crisis
Canada Post has laid off nearly 50 management employees as part of a restructuring effort aimed at addressing its “critical financial situation,” the corporation announced earlier this week.
Approximately half of the affected employees were based in Ottawa, with others in Toronto and various locations across the country. Canada Post assured that the layoffs would not impact service delivery.
The postal service has been grappling with severe financial challenges, a major point of contention in last year’s labor negotiations with the Canadian Union of Postal Workers (CUPW). The corporation reported a $313-million loss in its third-quarter statement and warned of “increasingly unsustainable losses” in the future.
CUPW confirmed that the laid-off managers were not part of its syndicate. A union spokesperson questioned why frontline postal workers were expected to shoulder the burden of the corporation’s financial struggles while senior executives, who earn significantly higher salaries and receive bonuses, remained largely unaffected.
Canada Post stated it would continue assessing labor costs and working with the federal government to regain financial stability.
“Canada Post continues to take steps to minimize the impact on employees, with a management hiring freeze in place since last year and a review of vacant positions when employees retire or leave voluntarily,” said chief financial officer Rindala El-Hage in an email to CTV News.
This marks the second major round of restructuring this year. In January, Canada Post eliminated 20% of its senior executive positions. The union criticized the timing of those layoffs, noting that three senior managers dismissed last month were unable to participate in Industrial Inquiry Commission hearings—proceedings that could have provided insight into the corporation’s financial decisions.
The federal government granted Canada Post a $1-billion loan in January to help sustain operations, though the corporation acknowledged that the loan would not resolve its structural financial issues. Canada Post has cited “rapid” industry changes and “high labor costs” as key factors in its financial decline since 2018.
