TORONTO – Canadian federal departments and agencies plan to cut more than 12,000 full-time positions over the next three years as part of the Carney government’s spending review. The figure, according to The Canadian Press, comes from plans published by various departments for 2026-27, which outline how they intend to save billions of dollars to meet government targets.
Among the positions expected to be eliminated are 1,793 at Public Services and Procurement Canada, 900 at Statistics Canada, and 942 at Health Canada. As for other agencies, the Canadian Space Agency has announced it will end work on the LEAP Lunar Rover Mission, while the Canada Revenue Agency plans to close business units no longer aligned with government priorities, such as those that managed the Digital Services Tax and consumer carbon pricing.
The Canadian Food Inspection Agency will reduce non-essential research activities, consolidate laboratory services to focus on core testing, decommission some vehicle washing stations, and discontinue functions no longer needed to manage risks related to the trade of pets. Environment and Climate Change Canada will reduce the Low Carbon Economy Fund, while Agriculture and Agri-Food Canada will wind down programs outside its core mandate, such as the Agricultural Climate Solution Living Labs.
The Department of National Defence and the Canadian Armed Forces plan to retire some aging or costly fleets and sell or lease underutilized properties. Library and Archives Canada will gradually reduce Access to Information and Privacy functions and discontinue funding for the Documentary Heritage Communities Program.
Several departments, including Shared Services Canada, the Department of Justice, Public Services and Procurement Canada, and Public Safety Canada, plan to use artificial intelligence to improve efficiency and service delivery.
Federal unions have expressed serious concern. Sharon DeSousa, president of the Public Service Alliance of Canada, stated that the cuts are not about efficiency, but a direct “attack on the public service,” which weakens the programs Canadians rely on.
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