Report Warns of 24,000 Public Sector Cuts in Ottawa-Gatineau by 2028

Ottawa and Gatineau will “bear the brunt” of public service job cuts as the federal government looks to find $25 billion in savings over the next three years, according to a new report.

 

Earlier this month, Finance Minister François-Philippe Champagne and Treasury Board President Shafqat Ali issued letters to cabinet, directing ministers to identify savings of up to 15 per cent in all federal departments. The directive applies to all Crown corporations, including the National Capital Commission and federal museums.

 

“This review reflects a return to core responsibilities, with a clear focus on fiscal discipline, quality service delivery, and long-term economic growth,” a spokesperson for the Treasury Board Secretariat said in a statement to CTV News Ottawa.

 

A report from the Canadian Centre for Policy Alternatives, released on Thursday, predicts a total of 57,000 full-time equivalent positions will be eliminated in the federal public service by 2028, with 24,421 full-time positions cut in the national capital region.

 

“Cities of Ottawa and Gatineau will bear the brunt,” says the report.

 

“While the service impacts will be felt across the country, almost half of the job losses will be in the national capital region of Ottawa and Gatineau.”

 

The report, by David Macdonald, says the Canada Revenue Agency, Employment and Social Development (ESDC) department and Citizenship and Immigration will see the highest number of job losses.

 

MacDonald says the federal government’s new directive to find savings could result in the number pf positions eliminated at CRA increasing from around 7,000 already to a total of 14,277 positions cut. The report estimates the number of positions eliminated at Citizenship and Immigration will increase from 1,944 in 2025 to 3,847 jobs in 2028, while full-time job losses at ESDC will be 2,000 next year and 4,000 by 2028.

 

The Canadian Centre for Policy Alternatives report suggests 2,878 positions could be eliminated at Public Works and Government Services, 1,900 FTE positions at Shared Services Canada and 1,928 jobs at the Department of Health by 2028.

 

“The Trudeau-era cuts have already generated substantial layoffs, but they are only the beginning. The Carney cuts are the second axe to fall, and the pain will be deep,” the report by Macdonald says.

“High quality service from a federal program will suffer. There will be fewer staff on the tax, EI and CPP call lines. Passport offices will lengthen wait times, which had been improving. Reducing staffing and service levels isn’t the right way to pay for a major military build-up and middle- and upper-income tax cuts. The trade off just isn’t worth the pain.”

 

The report says 45 per cent of the job cuts would be in the national capital region. Ontario, excluding Ottawa, would see 7,812 jobs eliminated, while Quebec, excluding Gatineau, would see an additional 5,926 jobs cut.

 

Federal unions have said they are gearing up to fight the proposed cuts to the federal public service. The Public Service Alliance of Canada held virtual town hall meetings this week to discuss the government’s plan to find $25 billion in savings over three years and what that could mean for them.

 

The Professional Institute of the Public Service of Canada (PIPSC) notes Prime Minister Mark Carney and the Liberals ran on a promise of “caps, not cuts” during the spring federal election.

 

“These aren’t caps or ‘efficiencies’ – they’re deep, dangerous cuts that put jobs and critical public services at risk,” PIPSC said in a statement on its website. “What we’re seeing is the most devastating attack on the federal public service in a generation – Harper-style austerity with a red logo slapped on.”

 

PIPSC is vowing to launch a national advertising campaign and conduct “ongoing advocacy” to fight the proposed cuts. Union president Sean O’Reilly said in a statement the Liberal government is “scapegoating public services” to manage threats from U.S. President Donald Trump.

 

“Worse, the Liberal government is doing it without a budget, without a vote in Parliament, and without a shred of transparency or democratic accountability. No debate. No public input. No consultation with unions. Just a backroom directive,” O’Reilly said.

 

“Public servants have always been there for Canadians—in crises, recovery, and uncertainty. The services they deliver provide stability and a lifeline in the toughest times. And now those services are at risk… Cutting them won’t solve our challenges; it will only make them worse.”

 

Statistics released by the Treasury Board of Canada Secretariat show 357,965 people worked for the federal government as of March 31, down from 367,772 people in 2024. The Canada Revenue Agency saw the largest drop in employees, with 6,656 fewer employees at CRA.

 

The last time the size of the federal public service didn’t grow was in 2015, when the number of employees dropped to 257,034 from 257,138 in 2014. The public service workforce expanded from 257,034 employees in 2015 to 300,450 in 2020 and 367,772 employees in 2024.

 

 

 

 

With files from CTV News Ottawa’s William Eltherington and Joshua Marano

This article was first reported by CTV News