At its annual public meeting held on Tuesday, Canada Post disclosed ongoing financial struggles and indicated potential significant job reductions through natural attrition. Rindala El-Hage, the chief financial officer of the Crown corporation, characterized Canada Post as effectively insolvent, citing an operating loss exceeding $1 billion for 2025 and an unprecedented quarterly loss of $541 million before tax.
El-Hage highlighted that the company faced substantial challenges due to persisting labor disputes, leading to continued uncertainty and disruptions that contributed to the financial setbacks. In response to the federal government’s call for transformative measures to stabilize its finances, Canada Post submitted a restructuring plan aimed at modernizing and streamlining its operations.
During the meeting, CEO Doug Ettinger alluded to forthcoming job cuts and outlined plans to reduce the workforce of approximately 62,000 employees through retirements and voluntary departures. Ettinger projected that over 16,000 employees would retire or leave by 2030, with an additional 14,000 expected to depart by 2035, emphasizing the need for a more streamlined organization.
The Canadian Union of Postal Workers (CUPW) expressed dissatisfaction with Canada Post’s plans, criticizing the CEO’s intentions to eliminate jobs and public services, which they argued would negatively impact the communities they serve. The union emphasized the importance of consultation with both CUPW and Canadian postal service users in any efforts to revamp the postal service.
CUPW also pointed out that recent stamp price increases and service expansions could aid Canada Post in recovering its financial losses. Negotiations for a new collective agreement between CUPW and Canada Post have been ongoing for over a year and a half, with the union initiating a nationwide strike in response to the government’s proposed changes to mail delivery services.
Despite these challenges, Canada Post expressed confidence during the public meeting that a mutually beneficial agreement could be reached through continued negotiations with CUPW and federal mediators.