Says corporate-wide restructuring efforts meant to 'better align management with future needs of the organization'
Canada Post has begun laying off an undisclosed number of management staff as part of a sweeping restructuring effort, signalling the start of a major transformation for one of Canada’s largest employers.
On Tuesday, the Crown corporation confirmed that the changes have begun to future-proof its management and address the company’s mounting financial losses.
“This is part of our corporate-wide restructuring efforts to better align our management team with the future needs of the organisation,” it said, according to Global News.
“Canada Post must take decisive action to deliver the services Canadians need in a way that is financially sustainable.”
Doug Ettinger, president and CEO of Canada Post, shared the development with senior leaders of the corporation in a letter, noting that “while these decisions are sometimes necessary, they are never taken lightly,” according to Global News.
Legal considerations with layoffs
Unlike unionized employees, who have collective agreements outlining their termination rights, non-unionized managers must navigate severance negotiations independently, according to a column from Monkhouse Law.
"Given the complexities involved, it’s crucial for affected managers to understand their rights and ensure they receive the severance they are legally entitled to."
Under Canadian employment law, it says, severance pay depends on several factors, including:
- Length of service – Employees with longer tenure are generally entitled to greater severance.
- Age – Older employees may receive higher severance due to challenges in re-employment.
- Position and responsibilities – Senior management roles often command more substantial severance packages.
- Availability of comparable employment – If it is difficult to secure a similar job in the current market, severance should be higher.
Layoff notices may not always comply with employment laws, says Monkhouse Law, citing common issues such as:
- Insufficient notice periods – Some employees may not have received adequate notice as required by law.
- Improper termination classifications – Some layoffs may be labeled as ‘temporary,’ despite functioning as permanent terminations requiring full severance pay.
- Severance offers that don’t align with legal entitlements – Employers may initially offer severance packages that do not reflect full entitlements under the law.
If a termination is not handled properly, says the firm, the employee may have grounds for a wrongful dismissal claim; for example, if:
- employees were not given adequate notice or severance pay
- employees were pressured into accepting an unfair settlement
- the layoff was discriminatory or retaliatory in nature.
Earlier this year, Canada Post announced it is laying off nearly 50 managers as part of a cost-cutting initiative following years of financial losses, according to a CBC report.
Union’ concerns over layoffs
Nearly nine in 10 (87 per cent) small business owners support changes to the national postal service, according to a previous survey of the Canadian Federation of Independent Business (CFIB).
Last month, business organizations across Canada raised urgent concerns over the most recent Canada Post workers’ strike, warning that the disruption could have far-reaching economic consequences. In late 2024, the Canadian Union of Postal Workers (CUPW) claimed that the Crown Corporation was using layoffs as a "scare tactic" amid the strike of more than 55,000 workers.
Meanwhile, Jan Simpson, national director of the Canadian Union of Postal Workers (CUPW), told MPs at a House of Commons committee that the reforms would “gut the public post office, eliminate thousands of unionised jobs and cause real hardship in communities across this country,” according to the Global News report.
Both CUPW and the Canadian Postmasters and Assistants Association (CPAA) have called for public consultations before any further changes are implemented.
Dwayne Jones, CPAA national president, urged the government to extend the timeline for Canada Post’s report on reforms and to maintain a moratorium on post office closures during that period. He also suggested that modernisation could involve expanding into new services such as financial offerings and EV charging stations, transforming post offices into “community hubs” rather than simply reducing headcount, according to the report.
