The federal government has launched a significant workforce reduction initiative, issuing early-retirement notices to tens of thousands of public servants. This move is a key part of a plan to shrink the federal bureaucracy by tens of thousands of positions over the coming years.
Scope of the Downsizing Initiative
Approximately 68,000 early-retirement notices have already been distributed, according to Mohammad Kamal, director of communications for the Treasury Board Secretariat. This action follows the 2025 federal budget, passed in November, which projected a reduction of about 40,000 jobs from the public service's peak size in the 2023-2024 fiscal year.
The government's broader target is to cut nearly 30,000 positions by the end of the 2028-2029 fiscal year. Officials emphasize that the Early Retirement Initiative is designed to be voluntary and structured, aiming to provide clarity and predictability for employees considering this option.
Financial Incentives and Eligibility Rules
To encourage voluntary departures and achieve cuts "to the greatest extent possible" through attrition, the government is deploying a substantial financial package and relaxing age rules. The initiative includes what amounts to $1.5 billion in incentives.
The new eligibility criteria are as follows:
- Employees who joined the public service before 2013 and are over age 50.
- Employees who joined after 2013 and are over age 55.
To qualify for early retirement without penalty, these workers must have at least 10 years of employment and a minimum of two years of pensionable service. This voluntary program is scheduled to run for one year.
Path Forward and Broader Context
In a statement, Mohammad Kamal confirmed the government is proceeding with an emphasis on voluntary options. He noted that updates on this initiative and the wider Comprehensive Expenditure Review would be provided to employees as they become available.
This large-scale downsizing effort represents one of the most significant reductions in the federal public service in recent years. The success of the voluntary program will determine whether further measures are needed to meet the ambitious job-reduction targets set out in the 2025 budget. The coming months will be critical in shaping the future size and structure of Canada's federal bureaucracy.
