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Budget pledges to shrink size of public service by 40,000 over three years

  • On Tuesday, the federal government announced plans to cut the federal public service by about 10 per cent, eliminating up to 40,000 jobs to reach roughly 330,000 workers by 2029.
  • The government says it aims to slow operating-cost growth and make programs more efficient by expanding AI use and launching the Office of Digital Transformation.
  • To meet targets, the government will rely on attrition, early retirements and some direct cuts, offering a one-year program starting Jan. 15, 2026 for federal workers eligible for early retirement.
  • The Public Service Alliance of Canada warned of job losses and ongoing uncertainty while Global Affairs Canada plans to cut $2.7-billion in foreign aid under the budget.
  • The budget projects $59.6-billion in savings and revenue over five years, and individual departments will provide more detail while Public Services and Procurement Canada communicates measures to employees and collective bargaining agents in the coming weeks.
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Budget pledges to cut 40,000 jobs from public service by 2029

OTTAWA — The federal government intends to slash the public service by 10 per cent by the end of the 2028-29 fiscal year — eliminating about 40,000 jobs — as it strays from its election promise to cut the number of federal employees solely through at

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The Hill Times broke the news in on Tuesday, November 4, 2025.
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