OTTAWA — Hundreds of workers have been warned they may lose their jobs as the government moves to shrink the size of the public service.
The Public Service Alliance of Canada said Friday that 219 of its members at Natural Resources Canada received notices this week saying their jobs might be cut.
In addition to those, the Professional Institute of the Public Service of Canada said Friday about 200 of its own members at Natural Resources Canada received notices.
Another 109 people at the Public Service Commission of Canada, 92 people at Crown-Indigenous Relations and Northern Affairs Canada and 74 staffers at the Department of Finance received similar notices, the union said.
Ottawa is looking to cut program spending and administration costs by about $60 billion over the next five years though its Comprehensive Expenditure Review.
The latest federal budget said the exercise will involve “restructuring operations and consolidating internal services.” It said it will also involve workforce adjustments and attrition to return the size of the public service to “a more sustainable level.”
The government is planning to cut the number of public service jobs by about 40,000 from a peak of 368,000 positions in 2023-24. About 10,000 jobs have been eliminated from the federal public service over the past year.
The plan will see a reduction of 1,000 executive positions over the next two years, and a 20 per cent cut to spending on management and consulting services over three years.
The Public Service Alliance of Canada warned that job losses at Natural Resources Canada could “severely” weaken Canada’s ability to manage its energy and natural resources responsibly.
Devin Baines, a spokesperson for Natural Resources Canada, said the department is moving forward on implementing savings outlined in Budget 2025.
Baines said receiving a letter signals the beginning of a process that takes several months and allows employees to consider various options, such as transition to other jobs in the public service, early retirement or employment outside the public service.
“In the end, Natural Resources Canada would anticipate that only a small number of those who receive letters would leave involuntarily,” Baines said.
Employment and Social Development Canada is also looking at trimming its workforce in response to the federal budget.
Mila Roy, a spokesperson for the department, said an adjustment in its staffing levels, including permanent positions, “will be required.”
“A workforce adjustment process and a reduction in our executive complement will launch in January 2026 to achieve our targets by the end of 2028—29,” Roy said in an email. “We cannot confirm how many positions will be reduced at this time.”
Roy said the department is looking to attrition to minimize the impact on employees “to the maximum possible extent.” She said the goal will be to ensure “continued employment for those who want to remain in the public service.”
Earlier this week, the federal government began sending letters with information on its planned early retirement program to almost 68,000 public servants who may be eligible.
The government says it’s trying to boost the rate of attrition and avoid cuts to younger workers by offering a voluntary program allowing workers to retire earlier without incurring a pension penalty. The budget said the government intends to implement the one-year early retirement program as early as January, though legislation is still required to move the plan forward.
A digital copy of the letter, shared with The Canadian Press, said public servants are not required to take action at this time.
It also said the program will be available only to certain employees who apply to participate under terms set by the Treasury Board.
“These parameters would be designed to maintain essential services and business continuity,” the letter said.
“As such, acceptance of an employee’s application to participate would not be guaranteed.”
Mohammad Kamal, director of communications for the Office of the President of the Treasury Board, did not answer a question this week about whether government departments and agencies will be announcing job cuts before the government gauges employees’ interest in the program.
Kamal said workforce reductions will be managed to the greatest extent possible through attrition and voluntary departures. He also said departments are working to reassign employees where possible.
This report by The Canadian Press was first published Dec. 5, 2025.
Catherine Morrison, The Canadian Press
