Ottawa: Canada’s top public servant, Michael Sabia, has warned that the 2025 Federal Budget’s cost-cutting plan will result in the loss of approximately 40,000 public service jobs as part of Prime Minister Mark Carney’s effort to rein in government spending.
In a memo sent to federal employees following the tabling of the government’s first budget, Sabia — the Clerk of the Privy Council — said the commitment to cut $60 billion over five years will bring “real consequences” for workers and their families.
“That number has real consequences for people who serve their country and for their families. I am not going to try to diminish those consequences — they are real,” Sabia wrote.
Programs to Be Reduced or Terminated
Sabia explained that to meet the Carney government’s fiscal targets, several federal programs will be scaled back, narrowed in scope, or terminated altogether.
“In all, the public service will need about 40,000 fewer people, including some reductions already underway,” the memo said.
These cuts will only proceed once the federal budget passes Parliament later this month.
Swift Decisions and Employee Support
Sabia noted that once the cuts are authorized, decisions will be made swiftly to avoid prolonging uncertainty within the public service.
He assured staff that those affected by layoffs or early retirements will receive support, emphasizing the government’s commitment to manage the transition responsibly.
“We will act quickly to minimize uncertainty — and support those impacted as they navigate this change,” he added.
Fiscal Goals Behind the Cuts
The Carney government’s first federal budget centers on spending less and investing more, with a focus on innovation, housing, and infrastructure. However, this reallocation of resources comes with significant public sector downsizing — one of the largest since the early 1990s.
The $60 billion reduction in federal expenditure over five years is intended to help Canada stabilize its deficit while redirecting funds toward productivity and economic growth.
If passed, the plan will reshape the federal workforce and redefine the scope of government operations, marking a major shift in Ottawa’s fiscal and administrative priorities.
(Source: Internal memo obtained via CBC / Federal Budget 2025 highlights)
