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Canada’s top public servant says budget will result in 40,000 job cuts, programs terminated

Sarah Taylor by Sarah Taylor
November 5, 2025
in Canadian news feed
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Canada’s top public servant says budget will result in 40,000 job cuts, programs terminated
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The head of the federal public service says the budget commitment to spend less and invest more will result in the loss of 40,000 jobs as programs are scaled back or eliminated. 

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Michael Sabia, clerk of the Privy Council, made the statement in a memo sent to federal employees a day after Prime Minister Mark Carney’s government delivered its first budget. 

The memo says the government’s promise to cut $60 billion over five years is a “big number” and will have to come with sacrifices. 

“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,” he said. “They are real.” 

Sabia explained that to hit the Carney government’s targets some programs will be reduced or limited in scope and others will be terminated outright. 

“In all, the public service will need about 40,000 fewer people, including some reductions already underway,” he said. 

Those job cuts will only happen if the federal budget passes Parliament later this month.

The clerk said once cuts begin, decisions will be made quickly to avoid prolonging uncertainty and that those affected by layoffs and early retirements will be supported.

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