Canada Post lays off managers amid ‘critical financial situation’

Canada Post has laid disconnected dozens of managers arsenic the nationalist postal work says it is facing a “critical fiscal situation.”

“As Canada Post continues to respond to the important fiscal and operational challenges it faces, the corp conducted layoffs earlier this week of astir 50 absorption employees arsenic portion of a corporate-wide restructuring,” the Crown corp told Global News successful an email connected Thursday.

The institution said astir fractional of the impacted employees were located successful Ottawa and the remainder were successful Toronto and different parts of the country.

“These decisions are ne'er easy, but they bespeak the captious fiscal concern the corp is presently facing,” Canada Post said.

The Crown corp added that it besides eliminated 20 per cent of its elder roles past month, completing a “restructuring of its elder executive.”

“The layoffs volition not interaction work to Canadians,” it said.

The cash-strapped institution got a financial lifeline from the national authorities past month to the tune of up to $1.034 cardinal successful repayable backing done the 2025-26 fiscal year.

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Without that short-term financing, the institution said successful its 2023 yearly study that it would wholly deplete its currency reserves by the 2nd 4th of 2025.

The layoffs and national backing travel after a month-long onslaught and another twelvemonth of losses for the Crown corporation.

In November, Canada Post reported a nonaccomplishment earlier taxation of $315 cardinal successful the 3rd 4th of 2024 amid a diminution successful parcel gross and volumes.

Canada Post’s Q3 gross from parcels dipped by 5.8 per cent and volumes declined by six cardinal pieces, oregon 9.6 per cent, compared with the aforesaid clip past year.

More than 55,000 Canada Post workers went connected onslaught connected Nov. 15, 2024, halting message and parcel services crossed the state during the engaged vacation buying season.

Postal workers returned to the occupation connected Dec. 17 aft they were ordered by the Canada Industrial Relations Board to extremity the strike.