The Bank of Canada plans to reduce its workforce by approximately 225 positions, representing about 10 percent of its total staff. This decision aligns with Prime Minister Mark Carney's initiative to cut government spending. The job reductions are expected to occur over the next few months, with completion anticipated by June. According to an internal memo, the central bank has already implemented measures such as lowering non-salary budgets, closing job vacancies, and offering early retirement options to employees. However, these actions alone will not suffice to achieve the 10 percent budget savings target set for the end of 2026. A spokesperson for the Bank of Canada stated that the organization is committed to adhering to Carney's request for cost savings, similar to previous initiatives. Paul Badertscher, the spokesperson, emphasized that the bank aims for a total budget reduction of 15 percent between 2026 and 2028. "Reductions are happening in all departments," he said. "We will make sure that the bank remains able to deliver on its mandate for Canadians." The workforce at the Bank of Canada has increased significantly since the COVID-19 pandemic, growing from about 1,800 employees in 2019 to 2,350 by the end of 2023. The job cuts are part of a broader expenditure review by the Canadian government. On Tuesday, Finance Minister Francois-Philippe Champagne announced plans to save C$60 billion (approximately $42.5 billion) over the next five years. This plan includes reducing the size of the public service by about 40,000 positions. In conjunction with the spending review, the government is assigning new regulatory responsibilities to the Bank of Canada, including oversight of the Consumer-Driven Banking Act. The budget also indicated that the bank could retain additional remittances to help finance these new initiatives. The memo from the Bank of Canada also mentioned a commitment to a further five percent reduction in corporate-level expenditures by the end of 2028. In a letter to federal workers, Privy Council Clerk Michael Sabia acknowledged the impact of the planned job cuts, stating, "I am not going to try to diminish those consequences. They are real." He added that achieving the C$60 billion savings will necessitate reducing several programs, limiting the scope of some, and terminating others outright.