Story perspectives

Canada to Cut 40,000 Public Service Jobs Amid Spending Cuts

1/21/2026

Summary

Story summary

The Canadian federal government plans to cut about 40,000 public service jobs from a 2023-24 peak of 368,000.
Since the budget announcement in November, 1,775 workforce adjustment notices were issued, affecting 2,273 employees.
Unions, including the Public Service Alliance of Canada (PSAC), cite concerns about transparency, mental health, and outsourcing.
The government aims to cut program spending by $60 billion over five years, with further job losses expected.

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Story summary

The Canadian federal government plans to cut about 40,000 public service jobs from a 2023-24 peak of 368,000.
Since the budget announcement in November, 1,775 workforce adjustment notices were issued, affecting 2,273 employees.
Unions, including the Public Service Alliance of Canada (PSAC), cite concerns about transparency, mental health, and outsourcing.
The government aims to cut program spending by $60 billion over five years, with further job losses expected.