Question Period Note: Reductions in the Public Service

Is the government laying off employees across the public service?

• The government has committed to returning the public service to a more sustainable size.
• The Comprehensive Expenditure Review will reduce the public service by 16,000 full-time equivalents by 2028-2029, bringing the size of the public service to roughly 330,000.
• We are committed to managing reductions through voluntary departures and attrition to the greatest extent possible. The recently implemented Early Retirement Incentive supports this goal.
• All employees affected by workforce adjustment are being treated fairly, with compassion and in accordance with their collective agreements.
If pressed about executive reductions:
• As the size of the public service adjusts, so too must its leadership. This is why we announced the reduction of 1,000 executive positions over the next two years.

In Budget 2025, the Government committed to bringing the federal public service back to a more sustainable level of about 330,000 employees, down from approximately 368,000 in 2023-24, for a total reduction target of roughly 40,000 positions.
Reductions began in 2024-2025 with a decrease of about 9,800 employees due to the Refocusing Government Spending initiative and attrition. An additional decrease of over 12,600 took place in 2025-26 because of attrition and funding that has not been renewed, bringing the population of the federal public service to 345,282 as of March 31, 2026.
Over the next three years, the Comprehensive Expenditure Review (CER) is expected to reduce the size of the federal public service by an estimated 16,000 full-time equivalents. When combined with natural attrition and voluntary departures, these measures will collectively bring the public service down to the target of approximately 330,000 employees.
When departments face budget reductions and must reduce their expenditures, they will generally complete a human resources analysis; and consider ending non-permanent staffing, such as contracts, term employees, casual workers and students. As needed, departments may consider full-time permanent employees.
The Work Force Adjustment Directive and Workforce Adjustment Appendices which form part of collective agreements outline the provisions for workforce adjustment for indeterminate employees.
Executives are subject to the Career Transition Appendices E, F and G of the Directive on Terms and Conditions of Employment for Executives, which facilitate the career transition of executives in a workforce reduction situation.
The Workforce Adjustment (WFA) provisions can be used when:
o the services of one or more indeterminate employees will no longer be required beyond a specified date due to a lack of work;
o there is a discontinuance of a function;
o a relocation of a work unit in which the employee does not wish to participate; or
o an alternative delivery initiative.
The aim is to ensure that indeterminate employees whose services are no longer required because of a workforce adjustment situation are, wherever possible, provided with alternative employment opportunities.
In the case of non-executive employees, the department will confirm to an employee if they will:
o receive a “guarantee of a reasonable job offer” at the same level and skill set within the core public administration OR
o be provided four options:
 Option A – 12-month surplus priority entitlement – they will be referred to public service jobs
 Option B – Transition Support Measure (TSM) – lump sum payment in exchange for resignation
 Option C (i) – TSM and an Education Allowance
 Option C (ii) – TSM, an Education Allowance and up to 2-year leave without pay
One of the key provisions under the WFA provisions is that organizations must establish a voluntary departure program for a minimum of 30 days in work units with five or more employees at the same group and level who are notified that their services may no longer be needed. Departments may also choose to offer the Voluntary Departure Program to smaller groups of affected employees. This allows public servants who wish to depart to do so, and reduces the number of involuntary departures. These voluntary departure programs can only be initiated once employees receive a notice that their position may be affected.
Data on workforce reductions in the CPA is available on Canada.ca. Information for certain departments is not yet presented as these institutions are still finalizing the implementation of their reductions. This data will be updated on a regular basis as these phases are completed and as additional information becomes available.

Reduction of Executive Positions
Budget 2025 specified that as the size of the public service adjusts, its leadership must also adjust and that the government will reduce the executive cadre by 1,000 positions over the next two years. These reductions are inclusive of the Comprehensive Expenditure Review and early retirements.
Since 2018, the ratio of executives to employees has increased, resulting in a top-heavy public service. A reduction of the executive workforce will help speed up decision-making; flatten organizations and the public service as a whole; more equitably and fairly distribute the work among executives; ensure executives have responsibilities commensurate with their pay; and, demonstrate to employees that workforce reductions are also being applied at the leadership level.
A reduction of 12% of executives across the federal public service will be applied in the next two years. Deputy Heads have access to the same mechanisms to implement these reductions as they do for CER reductions. This includes Career Transition provisions included in the Directive on Terms and Conditions of Employment for Executives and the Early Retirement Incentive (ERI).
For executives, Career Transition provisions can be used when there is a:
o lack of work;
discontinuance of a function, or,
o transfer of work or a function outside those portions of the federal public administration named in Schedule I, IV or V to the Financial Administration Act.
The department will plan and leverage mobility provisions (e.g., agreement to being deployed is a condition of their employment). And where a career transition situation exists, the department notifies the executive of their timelines and 2 options:
 Option 1 - Leave the core public administration and seek employment elsewhere; or,
 Option 2 - Seek continuing employment in the core public administration.

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