The federal government has begun sending information letters to nearly 70,000 eligible public servants about a planned early retirement program designed to shrink the public service without resorting to large-scale layoffs. Ottawa aims to reduce the workforce by roughly 40,000 positions from its 2023–24 peak of 368,000, after cutting about 10,000 jobs last year. The voluntary program would let eligible employees retire up to a year early without pension penalties, though acceptance is not guaranteed and legislation is still required before implementation.

Unions say details remain unclear, warning that early retirement could force workers to forgo significant severance-style payments negotiated in collective agreements. Labour leaders also question whether many employees—facing high living costs—will be financially able to participate.

For Canada’s broader job market, the move underscores a shift toward attrition-based public workforce management at a time when private-sector hiring has slowed and regional unemployment has inched upward. Large clusters of retirements could open opportunities for younger workers, but may also strain service delivery if vacancies persist. The situation highlights ongoing tensions between fiscal restraint, labour rights, and the government’s need to maintain essential public services.

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The Canadian Press’ original article, “Feds sending early retirement info to roughly 70,000 public servants” was published in CTV News on December 3, 2025. Read the Full CTV News story.

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