OTTAWA, January 13, 2026 — Federal departments are issuing workforce reduction notices on a scale not seen in decades, raising serious concerns about the federal government’s ability to deliver public services Canadians rely on. The Professional Institute of the Public Service of Canada (PIPSC) warns that the loss of experienced public servants will have lasting consequences for service quality, capacity, and accountability.
“These are not abstract cuts on the government’s balance sheet - they are real jobs, real expertise and real services at risk," said PIPSC President Sean O’Reilly. "Once this capacity is gone, it cannot be quickly or cheaply replaced. It’s a dark time for the federal public service.”
Today’s impacted departments include Statistics Canada, a cornerstone of the public service that provides the trusted data Canadians rely on to understand the economy, the labour market, inflation, and housing. That data underpins evidence-based decision-making across government, business, and communities, shaping economic policy, guiding investment, and supporting effective service delivery to all Canadians.
PIPSC notes that reductions at Statistics Canada are part of a broader wave of public-sector cuts that have already affected multiple federal departments, with more reductions expected in the days and weeks ahead. Together, these cuts represent a significant contraction of public service capacity across government, raising concerns about the federal government’s ability to deliver core services and functions, respond effectively to economic uncertainty, and implement its own ambitious agenda.
“If the government wants sound analysis to help retool the Canadian economy, it needs the right data and analysts who know how to interpret it. That capacity doesn’t exist without Statistics Canada experts. That capacity was slashed today,” said O’Reilly. “Given the challenges Canada is facing, this is the wrong decision at the worst possible time.”
The union also warned that workforce reductions are part of a broader pattern that will damage productivity and drive early departures, leaving departments increasingly dependent on private consultants to fill gaps.
“This is not happening in isolation,” O’Reilly said. “Public servants are facing a triple hit at the same time. Significant job cuts, forced return-to-office rules, and a wave of early retirement incentives. That is not a plan. It is a pile-on.”
PIPSC represents over 85,000 public-sector professionals across the country, most of them employed by the federal government. Follow us on Facebook, on X (formerly known as Twitter) and on Instagram.
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For more information: Johanne Fillion, 613-883-4900 (mobile), jfillion@pipsc.ca