Canada Post is planning to eliminate around 30,000 jobs by 2035 as part of a long-term restructuring strategy aimed at addressing mounting financial losses and modernising operations.
The workforce reduction, one of the largest in Canada’s public sector, will be implemented gradually, primarily through retirements and voluntary departures rather than large-scale layoffs. The move is part of a broader transformation plan designed to make the organisation leaner and more financially sustainable.
The decision follows a sharp deterioration in the postal service’s financial position, with losses widening to about $1.57 billion in 2025, nearly doubling from the previous year. Revenues have been impacted by declining letter mail volumes, increased competition in parcel delivery and disruptions linked to labour disputes.
To adapt, the organisation is restructuring its operating model, including plans to phase out remaining door-to-door mail delivery in favour of community mailboxes, streamline retail operations and revise delivery standards. These changes are expected to significantly reduce labour requirements over time.
Canada Post’s leadership has indicated that the overhaul is critical to ensuring long-term viability, as traditional mail volumes continue to decline and customer expectations shift towards faster, more flexible delivery services. The transformation also comes amid ongoing engagement with labour unions following recent industrial action.
While the phased approach is expected to limit immediate job losses, the scale of the planned reduction highlights the structural challenges facing legacy postal systems globally, as digital communication and private logistics providers reshape demand and cost structures.