At its yearly public gathering this week, Canada Post disclosed ongoing financial struggles and hinted at significant job reductions through natural attrition. The Crown corporation’s financial officer, Rindala El-Hage, stated that Canada Post is effectively insolvent, with a 2025 operating loss exceeding $1 billion and an unprecedented quarterly loss of $541 million before tax. El-Hage attributed these losses to labor disputes causing ongoing uncertainty and disruptions.

The federal government recently urged Canada Post to implement major changes, such as discontinuing home delivery and closing rural mail outlets, to stabilize its finances. In response, Canada Post submitted a private plan to Ottawa aimed at modernizing and streamlining its operations.

During the annual meeting, CEO Doug Ettinger hinted at significant job cuts and outlined plans to downsize the workforce of approximately 62,000 employees through attrition. Ettinger projected that over 16,000 employees could retire or leave the corporation by 2030, with another 14,000 expected to depart by 2035. The CEO emphasized the need for a leaner organization through retirements and voluntary departures to manage the transformation.

The Canadian Union of Postal Workers (CUPW) strongly criticized Canada Post’s plans for job cuts and service reductions, warning of severe consequences for the communities they serve. CUPW demanded more transparency and consultation from the federal government and Canada Post regarding the proposed postal service revamp.

CUPW also highlighted a stamp price increase and service expansion earlier in the year as potential avenues for Canada Post to recover its financial losses. Negotiations for a new collective agreement between CUPW and Canada Post have been ongoing for over 18 months.

Despite the ongoing labor dispute and financial challenges, Canada Post expressed confidence during its public meeting that a mutually beneficial agreement could be reached with the union.