Canadian government tells employees they may face job cuts as Mark Carney looks to trim spending
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Top bureaucrats at Employment and Social Development Canada and other government departments sent emails to employees on Wednesday informing them of a broad review of how the government spends and what it does. 'Given the scope of requested spending reductions, adjustments to our workforce may be necessary,' said the memo, which was seen by Bloomberg News.
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A separate memo from senior managers at Global Affairs Canada, which runs the country's diplomatic service, said budget reductions may equal C$1.1 billion ($804 million) by the 2028-2029 fiscal year. 'This review will require difficult decisions affecting our workforce,' it said.
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Earlier this week, Finance Minister Francois-Philippe Champagne asked members of his cabinet to find billions of dollars in savings to help the government pay for major expenditures on defense, infrastructure and capital projects.
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ESDC has responsibility for an insurance plan for unemployed workers, labor laws and training, among other government programs. In the memo, the department's senior managers say they are drafting options to find potential savings of 15% by fiscal year 2028-29.
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'Organizations are being asked to bring forward ambitious savings proposals to spend less on the day-to-day running of government by targeting programs and activities that are underperforming,' said the memo.
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In a statement Tuesday, the Public Service Alliance of Canada, a union, said planned spending reviews 'look and feel like austerity.'
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During this year's election campaign, Carney pledged to spend less on federal operations so the government can invest more in housing and in projects that improve Canada's economy and productivity.
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Some, including Parliamentary Budget Officer Yves Giroux, have questioned whether the government will be able to find enough savings to offset massive spending pledges for defense. Some forecasters now see the government running a budget deficit well above C$70 billion for the current fiscal year. The government's official forecast in December projected a C$42 billion shortfall.
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Top bureaucrats at Indigenous Services Canada also told employees this week the expenditure review 'will involve difficult decisions that will impact our programs and activities, as well as our workforce.'
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Box 500 Station A Toronto, ON Canada, M5W 1E6 Toll-free (Canada only): 1-866-306-4636 TTY/Teletype writer: 1-866-220-6045 About CBC Corporate Info Sitemap Reuse & Permission Terms of Use Privacy Jobs Our Unions Independent Producers Political Ads Registry AdChoices Services Ombudsman Public Appearances Commercial Services CBC Shop Doing Business with Us Renting Facilities Accessibility It is a priority for CBC to create a website that is accessible to all Canadians including people with visual, hearing, motor and cognitive challenges. Closed Captioning and Described Video is available for many CBC shows offered on CBC Gem. About CBC Accessibility Accessibility Feedback © 2025 CBC/Radio-Canada. All rights reserved. Visitez
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