Thousands of federal public servants across Canada have been notified that their jobs may be at risk as the federal government moves ahead with plans to shrink the public service after years of pandemic-driven expansion. Following a major spending review in 2025, the Liberal government announced it would reduce the federal workforce by 16,000 full-time equivalent positions over three years, bringing total employment down to about 333,000 by 2029.

Workforce adjustment notices have already been issued across dozens of departments, including Health Canada, Immigration, Refugees and Citizenship Canada, Global Affairs, Employment and Social Development Canada, and the Canada Revenue Agency. While not all notices will result in layoffs, many roles are expected to change or be eliminated, with Ottawa and Gatineau—home to nearly half of federal workers—particularly affected.

For the Canadian job market, the cuts arrive at a sensitive moment. While a cooling public sector may ease government spending pressures, unions and economists warn the reductions could slow service delivery, worsen processing backlogs, and push displaced workers into an already competitive labour market—especially as private-sector hiring softens in parts of the economy.

Have you been laid off by the federal government 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.

CBC News’ original article, “Federal government job cuts: Here's what we know” was published in CBC News on January 16, 2026. Read the Full CBC News story.

We cannot assist unionized employees, and if you are a member of a union, you should speak to your union representative before consulting with a disability lawyer about your workplace issue.