OTTAWA — Federal departments are set to begin issuing formal notices to public servants in January 2026, marking a significant step in the government’s plan to eliminate 28,000 jobs and save $60 billion over the next four years.
The notifications, part of a “comprehensive expenditure review,” will inform employees if their positions are “affected” by upcoming workforce adjustments. While some departments began issuing preliminary letters in December, several major agencies have confirmed that the bulk of formal notifications will arrive in the new year.
Departments Bracing for January Cuts
According to internal memos and departmental statements, several key federal bodies will launch their workforce adjustment processes next month:
- Public Services and Procurement Canada (PSPC): Employees were informed on December 9 that formal notices for those in affected work units will be issued in January.
- Shared Services Canada (SSC): A memo sent on December 3 confirmed that impacted staff will be notified next month.
- Employment and Social Development Canada (ESDC): The department, which is the largest in the core public service, confirmed it will launch its workforce adjustment and executive reduction process in January.
- Global Affairs Canada (GAC): Reports indicate that layoff letters are scheduled to be sent out between January 12 and January 31.
- Statistics Canada: The agency has stated that employees can expect further communication regarding reduction targets in January.
A Multibillion-Dollar Downsizing
The job cuts are a pillar of the 2025 Federal Budget, which aims to reduce the public service from its 2024 peak of nearly 368,000 employees down to roughly 330,000 by 2029.
The government intends to achieve these reductions through three primary methods:
- Direct Layoffs: Reducing 16,000 full-time equivalent (FTE) positions, including 650 executive roles.
- Attrition: Eliminating 12,000 positions as people resign or retire.
- Early Retirement Incentives: A voluntary program for eligible employees as young as 50 is expected to launch as early as January 15, 2026, pending legislation.
Union and Employee Reactions
The Public Service Alliance of Canada (PSAC) and the Professional Institute of the Public Service of Canada (PIPSC) have expressed deep concern over the impact on service delivery and member well-being. Unions report that “affected” notices have already “trickled out” in December to hundreds of workers at Natural Resources Canada (NRCan), the Department of Finance, and the Privy Council Office.
“Receiving a letter signals the beginning of a process that takes several months,” noted departmental spokespeople, adding that the goal is to minimize involuntary departures through internal reassignments and voluntary exits.
However, the three-week window for notifications at departments like Global Affairs has left many employees anxious. Union representatives have criticized the timing and transparency of the process, particularly as staff wait through the holiday season to learn the fate of their careers.
