Federal government's plan to reduce public service will include layoffs

Federal Government's Plan to Reduce Public Service

Next week's federal budget will present a comprehensive plan aimed at shrinking the federal public service, which includes layoffs, according to government sources. This initiative is part of Ottawa's strategy to address a significant deficit along with various spending priorities.

Details on Workforce Reductions

Federal insiders shared with the National Post that workforce cuts will exceed the attrition strategy announced earlier this year. The Carney administration is working to regain control over its expenses.

One official described the "right-sizing" approach as focusing first on attrition, offering early retirement packages, and reallocating employees to departments and agencies with higher needs before proceeding to layoffs.

Finance Minister's Confirmation

"Workforce adjustments will be implemented in a fair and smart way," Finance Minister François-Philippe Champagne said publicly on Wednesday.

At a funding announcement event supporting equality initiatives at the National Gallery of Canada, Champagne suggested the measures will extend beyond simply not replacing staff who leave voluntarily.

"Yes, we need to bring back the civil service to a sustainable level," he stated.
Summary

The federal government plans to reduce its public service workforce through a combination of attrition, targeted transfers, early retirement, and layoffs to manage the budget deficit responsibly.

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National Post National Post — 2025-10-30