About 10,000 federal public servants apply for early retirement
Approximately 10,000 Canadian federal public servants have applied for an early retirement program as part of a government effort to reduce the workforce by 16,000 jobs. Public sector unions have criticized the move, warning that it could lead to a loss of expertise and service degradation.
Why it matters
The downsizing of the federal workforce highlights tensions between government fiscal policy and labor union concerns over service quality.
The program was available to 68,000 public servants who were notified of their eligibility to retire based on age and years of service, without incurring a permanent reduction of pension payouts that's typical of early retirement.
As part of the 2025 budget, Prime Minister Mark Carney’s government pledged to cut the public service by 4.5 per cent, or 16,000 jobs, within three years . Some departments and agencies began their workforce adjustment process before the retirement incentive received royal assent.
The federal government predicted in the budget that the program will cost $1.5 billion over five years, with about half of that expense coming this year. It was expected to save taxpayers about $82 million annually, largely from pension contributions.
Federal public service shrinks by over 12,000 workers in 2026
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