6 Feb: Canada Post has laid off nearly 50 management employees this week as part of an ongoing restructuring initiative aimed at addressing its severe financial difficulties. The layoffs primarily affected staff in Ottawa, Toronto, and other locations, though the corporation assured that mail services would remain unaffected.
The move follows Canada Post’s mounting financial struggles, which were a major point of contention during last year’s union strike negotiations. The corporation reported a $313-million loss in the third quarter of 2024 and warned of worsening financial instability in the years ahead.
The Canadian Union of Postal Workers (CUPW) confirmed that the affected managers were not part of their bargaining unit. A union spokesperson criticized the decision, questioning why frontline postal workers were being asked to bear the burden of financial recovery while senior executives continued to receive high salaries and bonuses.
Canada Post stated that it will continue evaluating labour costs and working with the federal government to restore financial stability. Chief Financial Officer Rindala El-Hage emphasized that measures like a management hiring freeze and reviewing vacant positions had already been in place to minimize job cuts.
This marks the second major restructuring of 2025—in January, the company cut 20% of its senior executive roles. The union expressed disappointment that three senior managers dismissed last month were unable to participate in Industrial Inquiry Commission hearings, which could have provided insight into past financial decisions.
In response to its deteriorating finances, the federal government approved a $1-billion loan in January to support Canada Post’s operations. However, the corporation acknowledged that while the funding would help sustain short-term functions, it would not resolve its long-term structural challenges, which stem from rapid industry shifts and high labour costs since 2018.
