Massive Layoffs Hit Canada Revenue Agency
The Canada Revenue Agency (CRA) is undergoing a significant reduction in its workforce, with up to 280 permanent employees set to lose their jobs this spring. This announcement, delivered by CRA Commissioner Bob Hamilton and Deputy Commissioner Jean-François Fortin on May 23, marks the latest in a series of cuts at the federal department over the past six months. The majority of these layoffs are expected to impact employees in the National Capital Region, as reported by various sources on the web.
Over the past year, the CRA has seen a staggering loss of more than 6,000 positions, contributing to a broader decline in the federal public service, which has shed nearly 10,000 jobs between 2024 and 2025. This represents the first reduction in the federal public service since 2015, according to data released by the Treasury Board Secretariat. The agency has been reviewing its operating budget for over two years to align with government demands for savings, forcing officials to reassess workloads, streamline processes, and limit the number of projects undertaken.
Earlier in the year, the CRA also informed 450 term employees that their contracts would not be renewed at the end of March, a decision made during the peak of tax season. Spokesperson Etienne Biram noted that the agency regularly evaluates its financial resources to ensure sustainable operations and alignment with government priorities. These cuts follow previous measures in November 2024, including hiring restrictions, freezes on non-critical overtime, and the elimination of agreements for approximately 600 temporary workers.
Employment and Social Development Canada Also Affected
Alongside the CRA, Employment and Social Development Canada (ESDC) is facing its own wave of job reductions. Reports indicate that ESDC plans to cut around 800 jobs by June as part of the government’s broader budget review efforts. These layoffs are part of a strategic push to reduce operational costs across federal agencies, though specific details on affected regions or roles remain limited at this time.
The combined impact of these cuts at both CRA and ESDC has raised concerns about service delivery. With thousands of positions eliminated, processing times for tax filings, benefits applications, and other critical services may face delays. The federal government’s focus on fiscal constraints has led to a reevaluation of how these agencies operate, with an emphasis on innovation and efficiency to mitigate the impact of reduced staffing levels.
Broader Implications for Federal Public Service
The recent job cuts at CRA and ESDC are emblematic of a larger trend within Canada’s federal public service, which has seen a 2.6 percent reduction in total employment over the past year. From a peak of 367,772 employees in March 2024, the workforce dropped to 357,965 by March 2025 across both core public administration and federal agencies like Parks Canada and the National Capital Commission. Of the nearly 10,000 jobs lost, 72 percent were within agencies such as the CRA, highlighting the disproportionate burden placed on these entities.
Unions and employee advocates have called for a halt to these layoffs, arguing that further reductions could severely hamper the government’s ability to serve citizens effectively. As noted in posts found on X, public sentiment reflects frustration over potential declines in service quality and skepticism about whether these cuts will yield meaningful savings without compromising essential functions. While the government continues to prioritize fiscal responsibility, the long-term effects of these workforce reductions remain a topic of intense debate.