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Thousands of Federal Public Servants Receive New Layoff Notices as Ottawa Drives Cost-Cutting Review

Unions cite outsourcing concerns during Ottawa’s five-year downsizing plan.

Overview

  • Unions report a surge in workforce adjustment notices last week, with 1,775 to PSAC members and 1,849 to PIPSC members, which signal potential job impacts rather than confirmed layoffs.
  • Since the November budget, PSAC counts 2,273 notices to its members and CAPE reports more than 2,800 to its members across departments.
  • PSAC says last week’s departmental tallies included 730 at Public Services and Procurement Canada, 530 at Shared Services Canada, 350 at Statistics Canada, and 125 at the Treasury Board Secretariat.
  • The expenditure review targets about $60 billion in savings over five years with a planned reduction of roughly 40,000 positions, 1,000 executive roles, and a 20% cut to management and consulting spending, alongside early retirement letters sent to about 68,000 employees for a one‑year incentive program expected this month.
  • Statistics Canada plans to cut about 850 staff and 12% of its executive team with notifications expected within two weeks, as unions point to $19 billion spent on external professional services in 2024–25.