Canada Post Lays Off Nearly 50 Managers Amid Financial Struggles
Canada Post has laid off nearly 50 management employees as part of a restructuring effort. The company says this move aims to address its “critical financial situation.”
Restructuring and Financial Challenges
The layoffs affected employees across Canada, with about half based in Ottawa. Others worked in Toronto and other regions. Canada Post says these cuts will not impact mail services.
The company’s financial struggles have been ongoing. It reported a $313-million loss in its third-quarter statement last year. It also warned that its losses could become unsustainable. These issues were a key factor in recent union negotiations.
Union Response and Executive Reductions
The Canadian Union of Postal Workers (CUPW) confirmed the affected managers were not part of its syndicate. The union has questioned why employees must bear the financial burden when senior executives receive higher salaries and bonuses.
Last month, Canada Post eliminated 20% of its senior executive positions. The union expressed frustration that key managers were dismissed before an Industrial Inquiry Commission could examine financial decisions.
Government Loan and Future Outlook
In January, the federal government provided Canada Post with a $1-billion loan to support operations. However, the company warned this would not resolve its structural issues. Since 2018, it has struggled with declining mail volumes, industry changes, and high labor costs.
Recent Strike and Service Disruptions
These layoffs follow a turbulent period for the company. More than 55,000 postal workers went on strike in November 2024, halting mail services nationwide. The strike ended in December when the Canada Industrial Relations Board ordered employees back to work.
Canada Post says it will continue to evaluate labor costs and work with the government to stabilize its finances. It has also implemented a hiring freeze and is reviewing vacant positions.
As the company moves forward, financial pressures remain. Mail volumes continue to decline, and revenue from parcel delivery is dropping. The company’s ability to recover will depend on cost-cutting measures and possible future government support.
More…
- https://www.ctvnews.ca/business/article/canada-post-lays-off-50-employees-amid-critical-financial-situation
- https://www.thestar.com/business/canada-post-lays-off-almost-50-managers-amid-critical-financial-situation/article_48e36b4e-e4cb-11ef-bee4-33f89f8892b1.html
- https://globalnews.ca/news/11006646/canada-post-layoffs-feb-2025Â
