The Bank of Canada is set to cut roughly 10 per cent of its workforce, affecting about 225 employees, as part of a larger government-wide effort to curb spending. The job reductions are expected to take place over the next few months and be completed by June 2026, according to an internal memo obtained by Bloomberg News.
The central bank said it has already taken steps to reduce costs, including trimming non-salary budgets, closing open positions, and offering early retirement packages. However, these measures were not enough to meet its target of achieving a 10 per cent cost reduction by the end of 2026.
The move aligns with Prime Minister Mark Carney’s broader fiscal plan to rein in public spending and achieve $60 billion in savings over the next five years. The federal government aims to reduce the size of the public service by about 40,000 positions through a combination of attrition and programme cuts.
As per the media reports, a spokesperson for the Bank of Canada confirmed that the cost-cutting measures will affect all departments but assured that the institution will continue to fulfill its core mandate. The bank is also targeting an additional five per cent reduction in corporate expenditures by 2028, contributing to a total budget cut of 15 per cent between 2026 and 2028.
The central bank’s workforce has expanded significantly since the COVID-19 pandemic, rising from about 1,800 employees in 2019 to 2,350 at the end of 2023.
Even as the spending review unfolds, the bank is taking on new regulatory responsibilities under the Consumer-Driven Banking Act. To help support these added functions, the government has allowed the bank to retain more of its remittances.
The cuts mark a significant step in the government’s plan to streamline operations and restore fiscal balance amid growing economic pressures.