The federal statistics agency, Statistics Canada, has initiated a significant workforce reduction, planning to eliminate approximately 850 positions and cut its executive team by 12 percent. The Professional Institute of the Public Service of Canada (PIPSC) union has labeled the move as the beginning of a "dark time for the federal public service."
Thousands Receive Workforce Adjustment Notices
According to PIPSC, the agency has issued a staggering 3,274 workforce adjustment notices to employees. PIPSC President Sean O'Reilly confirmed that 940 of the union's own members at Statistics Canada are among those who received notices. The Public Service Alliance of Canada (PSAC) also reported that 350 of its members at the agency were informed their jobs are affected.
"These are not abstract cuts on the government’s balance sheet — they are real jobs, real expertise and real services at risk," O'Reilly stated. He emphasized that the data produced by Statistics Canada is a cornerstone for evidence-based decisions across government, business, and communities, and that once lost, this capacity cannot be easily restored.
Agency Confirms Adjustment Period
Statistics Canada spokesperson Carter Mann confirmed the agency entered its formal workforce adjustment period. Affected and surplus employees are being notified of their status over a two-week period starting January 2026. "Statistics Canada remains focused on serving Canadians and adapting to future needs as we move through this period of change," Mann said in an email statement.
The workforce adjustment process is designed to offer alternative employment opportunities to permanent staff who lose their positions. This can include options like "alternation," where an affected employee can trade places with one who wishes to leave, or the chance to compete for other available roles.
Part of Broader Federal Cuts
The cuts at Statistics Canada are not an isolated event. They are part of a broader Liberal government initiative to scale back the size of the public service over two years, with reductions accelerating recently. The government's budget projected a decline of nearly 40,000 workers from a peak of 368,000 in the 2023-2024 fiscal year, representing an overall reduction of about 10 percent.
These cuts are expected to translate to 16,000 full-time equivalent positions. The government has stated it intends to rely on attrition "to the greatest extent possible," using measures like lowering retirement age eligibility and offering retirement incentives totaling approximately $1.5 billion.
While the Treasury Board has not provided a detailed breakdown, workforce adjustment notices have already been issued across several other federal departments, including Natural Resources Canada, the Public Service Commission, Crown-Indigenous Relations and Northern Affairs Canada, and the Department of Finance.
