Canada Post has announced it requires immediate short-term financing to maintain its solvency through the coming year, as devastating financial losses accelerated by a prolonged labour dispute threaten its operations.
Financial Crisis Deepens
The crown corporation revealed that a $1 billion emergency loan provided by the federal government in January 2025, intended to support operations through the fiscal year ending March 31, 2026, will be completely depleted by the end of December 2025. This timeline is three months earlier than originally projected, forcing the postal service to seek additional financial support from short-term lenders.
Record Losses and Strike Impact
The dire financial situation stems from catastrophic third-quarter results. Canada Post recorded a pretax loss of $541 million for the period, representing a staggering 72% increase compared to the same quarter last year. This marks the worst quarterly performance in the organization's history.
The ongoing dispute with the Canadian Union of Postal Workers has been identified as the primary driver of these unprecedented losses. Intermittent walkouts that began over a year ago have severely disrupted operations and driven customers to competing delivery services.
Customer Exodus and Revenue Collapse
The labour instability has triggered a massive shift in business away from Canada Post. The company reported that revenue for parcels plummeted by 40% during the third quarter as frustrated customers sought reliability elsewhere.
An initial strike action was suspended in December 2024 after the federal government intervened, asking an independent labour board to order workers back to their positions. However, walkouts resumed in September 2025 when negotiations between management and the union again reached an impasse, further eroding customer confidence and revenue.
The combination of operational disruptions, customer attrition, and ongoing labour costs has created a perfect storm that now threatens the fundamental solvency of Canada's national postal service without immediate financial intervention.
