Federal Job Cuts Loom as 18,000 Public Servants Receive Layoff Notices, Raising Concerns for Canada’s Job Market

Federal Job Cuts Loom as 18,000 Public Servants Receive Layoff Notices, Raising Concerns for Canada’s Job Market

Approximately 18,000 federal public servants across more than 30 departments have received workforce adjustment notices since December, signalling potential job cuts as part of the federal government’s comprehensive expenditure review. While receiving a notice does not guarantee a layoff, the scale and pace—over 15,000 notices issued in just two weeks—underscore the seriousness of the process. The Canada Strong Budget 2025 outlines plans to eliminate up to 28,000 federal positions over four years and achieve $60 billion in savings.

Departments most affected so far include Statistics Canada, Global Affairs Canada, Health Canada, Shared Services Canada, and Transport Canada, with reductions spanning both executive and non-executive roles. Major public sector unions report thousands of members impacted, reflecting a broad restructuring rather than isolated cuts.

For the Canadian job market, these reductions come at a delicate time. The federal public service has been a key source of stable employment amid economic uncertainty, high interest rates, and uneven private-sector hiring. Large-scale federal downsizing may increase competition for professional, policy, IT, and administrative roles—particularly in Ottawa and Gatineau—while placing added pressure on provincial governments and the private sector to absorb displaced workers.

Have you been laid off by federal public services in Canada? Contact our employment lawyers today. Our legal team offers a free consultation and works on a contingency basis—there are no fees unless you win your case.

Josh Pringle’s original article, “30 federal departments have issued job cut notices: Here is the latest” was published in CTV News on January 26, 2026. Read the Full CTV News story.

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