OTTAWA: Canada Post is facing an “existential crisis,” according to the federal government, which announced sweeping reforms Thursday aimed at stabilizing the crown corporation’s finances and modernizing its operations.
“Canada Post is a national institution, older than our country itself, that has been serving Canadians for more than 150 years,” said Joël Lightbound, Minister of Government Transformation, Public Works and Procurement.
“Canadians continue to rely on it today, and it remains a vital public service.”
But the minister acknowledged the corporation is effectively insolvent, losing roughly $10 million per day.
Since 2018, it has accumulated more than $5 billion in losses. In 2024 alone, it lost over $1 billion, and is on track to lose close to $1.5 billion in 2025.
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As a result of the government’s announcement, the Canadian Union of Postal Workers (CUPW) issued the following as part of a statement on Thursday evening.
“In response to the Government’s attack on our postal service and workers, effective immediately, all CUPW members at Canada Post are on a nation-wide strike.”
Earlier this year, Ottawa provided a $1-billion injection to keep Canada Post afloat. The second quarter of 2025 marked its worst results ever, with a $407-million loss.
Letter mail volumes have plunged from 5.5 billion annually two decades ago to just 2 billion today, even as the number of addresses continues to grow.
Meanwhile, parcel delivery — once seen as the future of the postal service — has also declined. Canada Post’s market share in parcels has dropped from 62 per cent in 2019 to below 24 per cent today.
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Lightbound announced several measures to address the challenges:
- Letter mail delivery standards: Non-urgent mail will move by ground instead of air, saving $20 million annually.
- Community mailbox conversions: The moratorium is lifted, allowing the conversion of 4 million remaining door-to-door addresses to community mailboxes. That move is expected to generate $400 million in savings each year.
- Postal network modernization: The 1994 moratorium on closing rural post offices will be lifted. Canada Post will return with a plan to “modernize and right-size” its network of nearly 4,000 locations.
The government is also reviewing how stamp rate increases are approved, with an eye to speeding up the process.
“The Government of Canada is removing long-standing barriers to reform, but leadership and structural change from within the corporation will be essential,” Lightbound said.
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“Canada Post must take decisive action to deliver the services Canadians need in a way that is financially sustainable.”
He said the reforms follow recommendations made in May by the Industrial Inquiry Commission, led by William Kaplan.
“Canada Post is a vital national institution worth preserving,” said Lightbound.
“The measures announced today will help place the corporation on a stronger financial footing and provide the flexibility it needs to adapt to a rapidly changing environment.”
