Public Works Minister Joel Lightbound instructed Canada Post to "cut the fat" after cabinet approved major mail delivery service cuts, following Prime Minister Mark Carney's concerns over the Crown corporation’s viability.

Lightbound expects Canada Post to cut management positions. “I have asked Canada Post to … come back with savings, efficiencies,” Lightbound told reporters. This follows Cabinet approval of over $400 million in annual mail delivery cuts, according to Blacklock’s.

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Earlier this year, the federal government provided a $1-billion injection to keep Canada Post operational. In Q2 2025, the corporation reported a $407 million loss.

“Have you met with the union?” asked a reporter. “I have met with the union,” replied Lightbound.

“Since you announced your changes?” asked a reporter. “No,” replied Lightbound. These changes include using ground transport for non-urgent mail, converting four million addresses to community mailboxes, and lifting the moratorium on rural post offices.

Say it ain't so! Canada Post no longer delivering junk mail. Has anyone even noticed?

Since 2018, the company says it has lost more than $5 billion. Last month, it posted its largest loss ever for a single quarter. And yet the Canadian Union of Postal Workers thinks a boycott of… pic.twitter.com/y6v7wLBoew

— Rebel News (@RebelNewsOnline) September 28, 2025

Lightbound defended not meeting with the CUPW, stating he hopes the union and Canada Post are negotiating responsibly, given the corporation is "a disaster," losing $10 million daily.

Carney stated yesterday in the Commons that Canada Post needs to become profitable, noting its last pre-tax profit was in 2017. 

“The postal service is an essential service,” he said. “We need to take action. We need to restructure.”

Last year, Canada Post reported an $841 million pre-tax loss. Cabinet-approved cutbacks ended doorstep mail delivery, replacing it with community mailboxes, shifted to "flexible" delivery schedules (e.g., every other business day), and repealed a 1994 moratorium on rural post office closures.

Service cuts led to a national strike by the CUPW last Thursday, on behalf of its members.

Canada Post forecasts over a billion in annual losses, even with new federal loans. Management's report to Parliament stated the post office is structurally unsound.https://t.co/1Q9eh7vqyj

— Rebel News (@RebelNewsOnline) June 26, 2025

Amid renewed Canada Post worker strikes, Prime Minister Mark Carney announced Saturday that "significant changes" are needed to save the organization. Mail ceased last Thursday evening as the CUPW struck over proposed federal government changes to Canada Post.

CUPW National President Jan Simpson condemned Lightbound’s announcement as a "direct assault" on the public post office, democratic participation, and unionized jobs. 

“With no warning and no chance for public input, the Government has announced sweeping service cutbacks. We can’t let them get away with it,” Simpson’s statement said.

.@PSPC_SPAC Minister @JoelLightbound tells @canadapostcorp management to “cut the fat.” Remarks follow cabinet’s approval of deep service cuts to mail delivery.https://t.co/WpQfBrUTGI@cupw #cdnpoli pic.twitter.com/j9DmNIR4NI

— Blacklock's Reporter (@mindingottawa) October 2, 2025

The latest action follows a year of ongoing negotiations between the union and the Crown corporation, which have thus far failed to reach an agreement.

CUPW is striking because the government's measures necessitate downsizing the workforce, with a 45-day implementation deadline. 

The union fears that replacing door-to-door delivery with community mailboxes will force remote residents to travel further, decrease property values, and endanger seniors and those with mobility issues.