Financial troubles continue to plague Canada Post, as the organization anticipates significant losses in the coming years. During its annual public meeting, Canada Post officials revealed that operational losses are expected to exceed $1 billion by 2025. Rindala El-Hage, the Chief Financial Officer, highlighted the dire situation, stating that the organization is nearly insolvent.
Canada Post Faces Historic Losses
In the last quarter alone, Canada Post recorded a staggering loss of $541 million, marking a historic low for the company. With a workforce of 62,000, the organization plans to reduce its staff by nearly half by 2035. This reduction will come primarily through retirements and voluntary departures.
Staff Reductions and Retirement Plans
- 16,000 employees are expected to retire or leave the organization by 2030.
- Another 14,000 are projected to exit before 2035.
Doug Ettinger, the CEO, mentioned that these changes would be managed respectfully toward employees, primarily through retirements and other voluntary departure options.
Reform Measures Underway
As of September, Joël Lightbound, the government minister responsible for transformation, indicated that Canada Post had been losing approximately $10 million daily. In response, the organization submitted a recovery plan that suggests halting home delivery services, potentially saving about $400 million annually.
Additionally, some post offices in smaller communities may be shut down, though details remain scarce. Currently, employees at Canada Post are without a collective agreement, and negotiations for a new contract have been ongoing for over a year and a half.
