Canada Post has announced it has incurred over $1 billion in operational losses so far this year, primarily due to ongoing labor disruptions. The Crown corporation's chief financial officer, Rindala El-Hage, disclosed these figures during the company's annual public meeting on Tuesday.

The financial losses include approximately $535 million in the third quarter alone, which runs from July to September. This marks a significant increase from the previous year, where the total operating loss for the same period was $803 million. El-Hage stated, "The magnitude of Q3 2025 losses from operations is unprecedented. Canada Post is now effectively insolvent."

Despite receiving $755 million in federal funding during the third quarter, El-Hage emphasized that this support is not a long-term solution. "The Government of Canada has made it clear that repeated bailouts through taxpayer funds are not a sustainable solution. Continued reliance on emergency funding is not viable," she said.

The financial struggles of Canada Post are compounded by a prolonged contract dispute with the Canadian Union of Postal Workers (CUPW), which has lasted over 20 months. The union has been negotiating with Canada Post through federally appointed mediators, but no agreement has been reached. The ongoing labor disruptions have led to a decline in market share for Canada Post, as businesses and individuals seek alternative carriers for parcel delivery.

Chief operating officer Alexandre Brisson noted, "Canada Post used to dominate the parcel delivery industry. However, our faster and more efficient competitors not only caught up to us — they have far surpassed us. Over the past few years, Canada Post’s market share has plummeted, which has decimated its financial position."

In response to its financial challenges, Canada Post is considering significant operational changes. Federal infrastructure minister Joël Lightbound recently approved a restructuring plan that includes ending home mail delivery, increasing the use of community mailboxes, and closing some rural post offices. Lightbound stated, "Canadians can’t be footing an ever-growing bill year after year."

The CUPW has engaged in rotating strikes as negotiations continue, but both sides have not confirmed whether further strike actions can be avoided. Brisson emphasized the need for a new collective agreement that would provide flexibility and efficiency in delivery operations, stating, "The way to reverse this trend is clear — Canada Post needs more customers."

As Canada Post navigates these financial and operational challenges, the future of its services and workforce remains uncertain. The ongoing negotiations and labor disruptions will likely continue to impact the corporation's ability to recover financially and maintain its market position.