Canada Post lays off 50 managers due to ‘significant financial and operational challenges’

Canada Post has laid off 50 management employees in a corporate-wide restructuring, citing “significant financial and operational challenges.”

A spokesperson with Canada Post confirmed to CityNews that layoffs occurred this week. About half of the impacted management employees were located in Ottawa, with others in Toronto and across Canada.

“These decisions are never easy, but they reflect the critical financial situation the Corporation is currently facing,” the spokesperson said. “In January, the Corporation completed a restructuring of its senior executive, eliminating 20 per cent of the senior roles.”

The Crown corporation said the layoffs wouldn’t impact service.

“Canada Post continues to take steps to minimize the impact on employees, with a management hiring freeze in place since last year and reviewing vacant positions when employees retire or leave the company voluntarily,” the Canada Post spokesperson added.

“Our focus is on ensuring we have a strong team in place to transform the company to better serve the changing needs of Canadians. We will continue to evaluate our labour costs as we move forward and work with the government on the urgent changes needed to return the organization to solvency.”

In November 2024, around 55,000 Canada Post employees, represented by the Canadian Union of Postal Workers (CUPW), launched a nationwide strike. Their demands included wage increases to match inflation, enhanced job security, and improved working conditions, such as safer workplaces and adequate staffing for weekend deliveries.

Postal workers returned to their duties on Dec. 17, just before the holidays.

Last month, Canada Post said significant change was needed to modernize its operating model and preserve the national postal service for all, including small businesses, charities, and rural and remote communities.

The Crown corporation said it has lost $3.3 billion since 2018, citing a decline in letter mail and increased competition in the parcel delivery market.

According to a 2023 annual report, the postal service’s share of the parcel market plummeted to 29 per cent from 62 per cent before the COVID-19 pandemic, as Amazon and other competitors seized on skyrocketing demand for next-day doorstep deliveries.

While the market for package delivery has ballooned in recent years, Canada Post’s shipments have shrunk — by nearly a quarter since 2020 to 296 million parcels in 2023.

The federal government appointed an industrial inquiry commission to assess the 157-year-old institution’s structure and business model. The commission’s recommendations are due by May 15.