Carney Budget Plans Major Public Service Cuts
Prime Minister Mark Carney’s initial budget aims to reduce the public service workforce by 16,000 full-time equivalent jobs, roughly 4.5% of the total staff, over three years.
Details of the Reductions
The federal budget, unveiled on Tuesday, targets a decrease of 16,000 positions within the next three fiscal years to shrink the bureaucracy to a “more sustainable level.”
These cuts are scheduled to start in April 2026 and continue through to 2029.
Government Justification and Impact
The government highlights that public service growth has outpaced the Canadian population, with numbers peaking in 2024 at just under 370,000 employees.
“We need to bring back the civil service to a more sustainable level,” said Finance Minister François-Philippe Champagne. “But we’re going to be very compassionate.”
As of March 2025, Canada employed 357,965 public servants, 43% of whom work in the National Capital Region, where the federal government is the largest employer.
Executive Positions Targeted
Among the cuts, 650 executive roles will be eliminated, representing about seven percent of executive staff, according to budget documents.
Expert Opinion
One expert described the target reduction as “relatively modest,” despite public sector unions preparing for significant cuts.
Summary
The Carney budget plans a steady reduction in federal public service jobs to address inefficiencies while pledging compassionate handling of affected employees.