Ottawa and Gatineau will 'bear the brunt' of public service cuts: report
In his analysis, Macdonald said that the hardest hit departments could be the Canada Revenue Agency (CRA), Employment and Social Development Canada (ESDC) and Immigration, Refugees and Citizenship Canada (IRCC).
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The CRA's recent job losses of around 7,000 could double to 14,277, according to the analysis.
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Meanwhile, for ESDC, full-time job losses could be 2,000 next year with that number doubling to more than 4,000 by 2028. The losses could impact services such as employment insurance and Canadian pension plan payments.
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IRCC, which already shed 1,944 jobs, is set to double that to 3,847 in three years time.
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For Macdonald, there is no way to cut 15 per cent of departmental budgets without impacting services. He said that there is a cyclical trend of the federal government cutting down the size of the public service, only to rehire later to curtail public frustration with poor service delivery.
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'It's definitely cheaper to make people wait online for eight hours,' Macdonald said in an interview. 'It's definitely cheaper for the federal government. (It's) terrible for Canadians and businesses trying to get tax advice, but it's cheaper.'
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The size of the federal public service grew significantly during the government of then-prime minister Justin Trudeau until there was a reduction in the last fiscal year. There were 357,965 workers in the federal public service in 2025, according to the most recent data released by the Treasury Board, down from 367,772 the year before.
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In his letters, Champagne reportedly asked ministers to find savings of up to 7.5 per cent next fiscal year, 2.5 per cent the year after and 5 per cent in the 2028-29 fiscal year, adding up to a total of 15 per cent.
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A few federal organizations were spared by the exercise, including the offices of the auditor general, parliamentary budget officer and the Supreme Court of Canada.
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Crown corporations have also been asked to find savings to help Carney's government reach the promised $25 billion in savings in the Liberals' platform from the recent election campaign.
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