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Public sector lay-offs are on their way

Jan 22, 2025

Public sector lay-offs are on their way

The hammer is finally coming down on federal worker numbers, which ballooned by over 43% from 2015 to hit 367,772 last year.

What happened: After the federal government nixed the department’s pandemic-era funding, Immigration, Refugees, and Citizenship Canada (IRCC) told employees that it would cut roughly 3,300 jobs over the next three years to get staffing back to 2021 levels.

  • The drop comes as the IRCC winds down services that received temporary funding, like resettling Afghan nationals and helping Ukrainian refugees.

  • According to the 2023 federal budget, the IRCC must find a way to slash $237 million by 2026 and work its way up to a $336 million reduction by 2028. 

Why it matters: With five years' worth of spending reductions totalling $15.2 billion on the near horizon, more cuts are coming. Federal workers are now speculating on Reddit about which department might see cuts next, with some users predicting public health and employment.  

Zoom out: The Canada Revenue Agency also announced plans to lay off 580 temporary workers in November. Whoever is next, it’s clear the government’s original intention of cutting public service by just 5,000 full-time positions over four years is no longer happening.—QH

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