Canada Post presents bleak financial picture, hints at major job cuts

At its annual public meeting on Tuesday, Canada Post revealed it continues to be short on cash and hinted at major job cuts through layoffs.

“Canada Post is effectively bankrupt,” said Rindala El-Hage, the Crown corporation’s chief financial officer.

He announced that Canada Post’s projected operating loss to date for 2025 is more than $1 billion, and its latest quarterly loss – $541 million before tax – was unprecedented.

“It was the largest quarterly loss in the company’s history,” El-Hage said. He said “continued labor uncertainty and disruption” due to an ongoing labor dispute with its workers contributed to the loss.

In September, the federal government asked the Crown corporation to make sweeping changes to stabilize its finances and ensure its survival, such as ending home delivery and closing some rural mail outlets.

Earlier this month, Canada Post privately submitted a plan to Ottawa to modernize and streamline the postal service.

Look Can Canada Post be saved?:

Canada Post is effectively bankrupt. Can it be saved? , About that

Could ending door-to-door mail delivery help solve Canada Post’s financial disaster? It is part of the federal government’s proposed solution to stem the millions of dollars in daily losses, but the union responded swiftly with a nationwide postal worker strike. Andrew Chang explains how Canada Post’s greatest strength may now be its greatest weakness – and how a viable path forward may emerge. Images provided by Getty Images, The Canadian Press and Reuters.

At the annual meeting, CEO Doug Ettinger hinted at major job cuts and said the corporation would use layoffs to reduce its workforce of approximately 62,000 employees.

He said Canada Post is projected to have more than 16,000 employees retire or leave the corporation by 2030 and more than 14,000 employees to retire or leave by 2035.

“Moving forward, we will need to become a leaner organization,” Ettinger said. “We can navigate this change with respect for our employees, among other ways, such as retirement and voluntary departures.”

The Canadian Union of Postal Workers (CUPW) did not react well to his statements.

“Canada Post CEO Doug Ettinger doubled down on his plans to eliminate our jobs and our public services. These plans will have a devastating impact on the communities we serve,” CUPW said in an emailed statement.

The union also said the federal government needs to consult with it and Canada Post customers regarding plans to reform the postal service.

“The Canadian Union of Postal Workers and Canadians have been kept in the dark. It’s outrageous,” CUPW said.

The union also said stamp price increases and service expansion earlier this year will help Canada Post offset its losses.

Negotiations with Canada Post for a new collective agreement have been going on for more than a year and a half.

CUPW Nationwide strike started In late September the federal government announced its plans to make changes to the company’s mail delivery business.

union Switched to rotational attacks by 11 OctoberMail service is being restored in most places. Workers in Quebec and parts of Ontario have stopped distributing flyers But continue to deliver addressed mail.

CUPW says negotiations with Canada Post, supported by federal mediators, are continuing.

During their public meeting, Canada Post said it was confident both sides would reach an agreement.