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Canada plans public service cuts via attrition and layoffs to save billions amid rising costs and fiscal pressure.
Finance Minister François-Philippe Champagne said Canada’s federal public service must return to a “sustainable” size, citing a 24% increase in employees since 2019, with over 357,000 workers in 2025.
While headcount dipped slightly in 2025, personnel costs rose $1.5 billion.
The government plans workforce adjustments through attrition, early retirement incentives, reassignments, and potential layoffs to achieve 7.5% in savings by 2026-27, rising to 15% by 2028-29.
Though the Liberal platform pledged no cuts, officials acknowledge changes are necessary amid fiscal pressures.
The upcoming budget will detail these measures, framed as a mix of investment and austerity, with Prime Minister Mark Carney emphasizing tough but responsible choices.
Union leaders warn large-scale reductions could strain essential services.
Canadá planea recortes en el servicio público a través de desgaste y despidos para ahorrar miles de millones en medio de costos crecientes y presión fiscal.