Canada Revenue Agency (CRA) Commissioner Bob Hamilton and Deputy Commissioner Jean-Francois Fortin informed staff Thursday that up to 280 jobs will be cut, which top officials say will impact service delivery.

To achieve required savings, the CRA has been reviewing its budget for over two years at the government's request. 

Officials stated that the agency must change its operations to address job losses by reassessing project load, streamlining processes, and innovating.

Before the election, Prime Minister Carney promised to limit public service size and assess spending for results, which could result in job cuts. 

Canada's federal public service increased by 110,000 (43%) between 2015 and 2025, totalling 367,772 employees, surpassing the per capita rate of the UK and Germany. 

Due to fiscal constraints, the CRA will cut up to 280 jobs, mainly affecting employees and executives in the National Capital Region. The specific services to be eliminated were not detailed, according to the Canadian Press.

The Union of Taxation Employees reports that the CRA will not renew contracts for over 1,000 term workers nationwide. Since 2024, more than 3,000 jobs, including debt collector and call centre roles, have been cut at the agency.

The union is demanding accountability and an immediate stop to job cuts at the agency.

CRA spokesman Etienne Biram attributed recent budget impacts to the end of COVID program funding. Their workforce fell to 52,499 in 2025 from 59,155 in 2024, but remains about 20% higher than the 43,908 employees in 2019.

Other government organizations are also reducing jobs, including 800 term positions at Employment and Social Development Canada (ESDC) by the end of June.

Treasury Board Secretariat records indicate that ESDC had 39,154 employees in 2024, an increase from 39,089 in 2021. The department experienced significant growth during the initial COVID-19 pandemic year, rising from 27,115 employees in 2020 to 32,697 in 2021.

The Liberal platform promised a comprehensive review of government spending focused on productivity, aiming to streamline services and reduce reliance on consultants. 

The Montreal Economic Institute (MEI) suggests following the Chrétien government's 1994 program review to cut tens of thousands of federal jobs, potentially 64,000, and save nearly $10 billion annually by 2029. Rising federal personnel costs contribute to significant deficits. 

The MEI expresses cautious optimism, noting that while a spending review is promised, details are lacking. 

Previously, then-prime minister Justin Trudeau tasked Anita Anand with finding significant savings. The government sector decreased by 10,000 employees between 2024 and 2025 (from 367,772 to 357,965), marking the first reduction in ten years according to Treasury Board Secretariat data.

Another 37,100 temporary federal jobs were added in April for election preparations, but most are expected to end in May.