Canada Post, during its yearly public gathering, disclosed ongoing financial struggles and hinted at potential significant job reductions through natural attrition. The company’s CFO, Rindala El-Hage, described Canada Post as effectively insolvent, citing operating losses exceeding $1 billion in 2025 and an unprecedented quarterly loss of $541 million before tax. El-Hage attributed these losses to labor disputes causing ongoing uncertainty and disruption.
In response to the financial challenges, the federal government recommended strategic changes, including discontinuing home delivery and closing rural mail outlets to stabilize Canada Post’s finances. The company submitted a modernization plan to Ottawa earlier this month to streamline its operations.
CEO Doug Ettinger, at the annual meeting, foreshadowed substantial job cuts, stating that Canada Post aims to downsize from its current 62,000 employees through attrition. Ettinger projected over 16,000 retirements or departures by 2030 and another 14,000 by 2035, emphasizing the need for a leaner organization.
The Canadian Union of Postal Workers (CUPW) criticized Ettinger’s plans, expressing concerns over job losses and service impacts on communities. CUPW called for consultation with the union and customers regarding postal service revamps, labeling the lack of transparency as outrageous.
To address financial setbacks, Canada Post implemented a stamp price increase earlier this year and expanded services to recover losses. Negotiations for a new collective agreement with CUPW have been ongoing for over a year and a half.
Following the government’s proposed changes to mail delivery services, CUPW initiated a nationwide strike in late September, transitioning to rotating strikes by October 11. Despite service disruptions in some regions, negotiations with Canada Post, mediated by federal authorities, continue.
Canada Post expressed confidence during the public meeting that a mutual agreement will be reached with the union through ongoing negotiations.