OTTAWA — Canada Post is set to lay off an undisclosed number of managers as part of a corporate restructuring initiative that began earlier this year. Chief Executive Doug Ettinger informed employees of the changes in a message sent earlier this week. The restructuring aims to transform the postal service to better meet the evolving needs of Canadians.

"Canadians have changed the way they use the postal service, and we must change with them," Ettinger stated in his letter. He emphasized that the latest job cuts are intended to align the management structure with the future requirements of the organization.

"We need to ensure our costs better align to our financial realities, which means our organization will be leaner at all levels going forward," he added.

As part of its strategy to reduce staffing, Canada Post is implementing a hiring freeze and utilizing attrition where possible. These changes come at a time when Canada Post is negotiating a new contract with approximately 55,000 unionized employees, who are currently engaged in rotating strikes.

Both Canada Post and the union have announced plans to meet with a mediator this week in hopes of advancing negotiations that have been ongoing for nearly two years. The strikes began after the federal government introduced significant changes to Canada Post’s mandate, which include expanding community mailboxes, altering delivery standards, and closing some post offices.

Jan Simpson, president of the Canadian Union of Postal Workers (CUPW), testified before a parliamentary committee, stating that the government's announcement directly interfered with collective bargaining. She urged the government to reconsider these changes.

Procurement Minister Joël Lightbound remarked that the federal government could not delay necessary changes to the struggling Crown corporation. Canada Post has faced substantial annual losses in recent years and required a $1 billion bailout from the federal government earlier in 2025.

The company has been given 45 days to devise a plan to implement the proposed changes, which the union has criticized as detrimental to the future of the postal service. Lightbound indicated that Canada Post's plan should include strategies to "right-size" the business. He did not specify how many jobs might be lost, stating that decision rests with management.

In its latest proposal to the union, Canada Post included provisions for job losses and eliminated a signing bonus that was part of a previous offer made in May. The current proposal also includes a wage increase of 13.59 percent over four years, which falls short of the union's request for a 19 percent raise made in August. CUPW members have been on the picket lines for over a month, transitioning to a rotating strike model about two weeks into their action.