A new report from the Canadian Centre for Policy Alternatives warns that nearly 60,000 federal public service jobs could be eliminated by 2028 as part of the federal government's cost-cutting measures. The cuts stem from a directive by Finance Minister François-Philippe Champagne, who asked departments to reduce program spending by 15%—excluding defence, policing, and certain independent bodies.

The proposed reductions are expected to hit agencies like the Canada Revenue Agency, Employment and Social Development Canada, and Immigration, Refugees and Citizenship Canada the hardest. Ottawa and Gatineau will bear the brunt, with almost half of the job losses concentrated in the National Capital Region. The report also predicts widespread impacts across Canada, including longer wait times, service disruptions, and fewer frontline workers to address public needs.

These cuts come amid rising defence spending and promised tax reductions. Despite campaign assurances from Prime Minister Mark Carney that federal staffing would be capped—not reduced—analysts say layoffs are inevitable, particularly among younger or contract workers.

The looming federal downsizing adds pressure to an already fragile Canadian job market, which is seeing waves of restructuring across both public and private sectors.

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The Canadian Press’s original article, “Number of federal public service jobs could drop by almost 60,000, report predicts” was published in CTV News on July 24, 2025. Read the Full CTV News story.