Federal public service unions warn that the Carney government's 2025 budget, which includes thousands of job cuts, early retirement incentives, and increased AI integration, poses risks to workforce stability and service quality.
The 2025 budget aims to reduce the federal workforce by 16,000 positions over more than three years, starting next year. This effort aligns with a broader goal to decrease the number of public servants to approximately 330,000 by March 2029, down from the peak of around 370,000 in March 2024. As of March 2025, Canada employed about 358,000 public servants, with over 40% located in the Ottawa-Gatineau region.
Prime Minister Mark Carney’s administration argues that these measures will streamline the public sector and free resources for new investments.
"Behind every cut is a service delay, a slower emergency response, or a system that’s one failure away from crisis," said Sean O'Reilly, President of the Professional Institute of the Public Service of Canada (PIPSC). "These cuts don’t make us leaner — they make us more fragile."
"When governments make big promises, somebody needs to deliver on them," stated Nathan Prier, President of the Canadian Association of Professional Employees (CAPE).
Unions express deep concern that the planned job cuts will weaken public services despite government assurances of efficiency and reinvestment.
The proposed 2025 budget’s significant federal job cuts raise union fears about diminished service quality and workforce fragility despite government claims of improved efficiency.