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Job cuts indicted for government departments at CRA and ESDC, affecting hundreds of employees

Canada's Revenue Agency to Lay Off Around 280 Permanent Staff Due to Financial Restrictions

Canadian government department, Canada Revenue Agency, reducing up to 280 permanent positions due...
Canadian government department, Canada Revenue Agency, reducing up to 280 permanent positions due to budgetary pressures.

Job cuts indicted for government departments at CRA and ESDC, affecting hundreds of employees

CANADA - The Canada Revenue Agency (CRA) will see up to 280 jobs cut, affecting its ability to deliver services effectively, according to the Agency's top officials. In a statement issued to employees on Thursday, Commissioner Bob Hamilton and Deputy Commissioner Jean-Francois Fortin announced the impending job losses from the agency's workforce, which currently stands at 59,155 employees.

The job cuts come as the government seeks to find savings and adjust to funding constraints following the end of temporary program funding and broader cost-cutting measures across the federal public service. The CRA is not alone in its pursuit of efficiency in the face of financial pressures, as several other government organizations have also announced job reductions.

"It is likely that some internal services will be impacted, with some services being eliminated entirely," the message sent to staff stated. No specific services or roles were mentioned, but it was confirmed that the Digital Transformation Program Branch will no longer exist as an independent entity and will instead be integrated into other parts of the agency.

The majority of job losses will affect employees in the National Capital Region, with additional impacts anticipated for executive positions. The CRA will initially seek out voluntary departures from staff, but the officials admitted that the government’s policy to offer permanent employees affected by layoffs a "reasonable job offer" elsewhere in the public service may not be feasible due to fiscal constraints.

Whilst some administrative and support functions will be reduced, the CRA aims to streamline internal processes and innovate service delivery methods to maintain essential functions despite the workforce downsizing. The Union of Taxation Employees, however, has demanded accountability from the Government of Canada and called for "an immediate moratorium" on job cuts at CRA, citing concerns about increased processing delays, call center backlogs, and escalating workloads for the remaining staff.

As Canadian government employees, the number of federal employees dropped by 10,000 between 2024 and 2025, with 357,965 employees as of March 2025, marking the first decrease in federal employment in over a decade. The CRA's workforce numbers have decreased from 59,155 employees in March 2024, bringing the total to 52,449 as of March 31, 2025.

Article by Catherine Morrison.

  1. The Union of Taxation Employees is urging the Government of Canada to reconsider the job cuts at the Canada Revenue Agency (CRA), expressing concerns about potential delays in processing news regarding citizenship and finance matters due to increased workloads and depleted resources.
  2. Amidst financial pressures and the pursuit of efficiency, the Canada Revenue Agency (CRA) aims to streamline internal processes and innovate service delivery methods to maintain essential finance-related services, despite the anticipated reduction in staff and elimination of specific services like the Digital Transformation Program Branch.

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