Top officials at the Canada Revenue Agency (CRA) have announced a major round of job cuts that will affect the agency’s ability to deliver services effectively. Commissioner Bob Hamilton and Deputy Commissioner Jean-François Fortin communicated to staff that as many as 280 employees will lose their jobs as part of a broader effort to reduce operating costs.
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Background: Why the Job Cuts Are Happening
Two Years of Budget Reviews Lead to Workforce Downsizing
The CRA has been under pressure to tighten its budget for more than two years, as the federal government demands significant savings across departments. The agency has been carefully reviewing its operations to find ways to reduce expenses without sacrificing essential functions.
Impact on Services and Operations
Reassessing Workflows and Project Priorities
In their message to employees, the CRA’s top officials emphasized the need to rethink how the agency functions in light of the job losses. This includes reconsidering the number of projects the agency undertakes, streamlining internal processes, and innovating new ways to maintain service delivery despite fewer resources.
Some Internal Services May Be Reduced or Eliminated
While specifics were not fully disclosed, officials noted that certain internal services will likely be affected, with some possibly eliminated entirely. Notably, the Digital Transformation Program Branch will cease to exist as an independent entity and will have its work integrated into other branches of the CRA.
Who Is Most Affected?
National Capital Region and Executive Roles Bear the Brunt
The job cuts will be felt throughout the CRA but will primarily affect employees located in the National Capital Region. Executive positions are also among those impacted by the workforce reductions.
Broader Context: Job Cuts Across Federal Agencies
Employment and Social Development Canada’s Passport Program Layoffs
The CRA is not alone in reducing its workforce. Employment and Social Development Canada (ESDC) is ending approximately 800 term positions in its passport program, with layoffs set to take effect by the end of June 2025. This decision was described as necessary due to a forecasted decline in passport applications for the upcoming year.
Federal Workforce Trends and Growth During COVID-19
Data from the Treasury Board Secretariat reveal that while ESDC’s staffing increased significantly during the COVID-19 pandemic, from 27,115 in 2020 to 32,697 in 2021, recent figures show a slight rise to 39,154 employees by 2024. However, the government’s broader federal workforce has seen a contraction for the first time in a decade, with a drop of 10,000 employees between 2024 and 2025.
Challenges in Employee Transition and Job Offers
Limited Opportunities for Redeployment Within the Public Service
The CRA intends to initially seek volunteers willing to leave the agency voluntarily. However, due to fiscal constraints, the agency will be unable to offer most affected permanent employees a “reasonable job offer” elsewhere in the public sector—a departure from previous workforce adjustment practices.
Union Responses and Employee Concerns
Union of Taxation Employees Warns of Service Delays and Employee Burnout
The Union of Taxation Employees reported that over 1,000 term workers will not have their contracts renewed this year, adding to more than 3,000 job losses at the CRA since 2024. These cuts have included roles such as debt collectors and call centre staff.
Union head Marc Brière expressed concern that continued job eliminations are causing growing delays in processing, unanswered calls, and increasing stress among remaining staff. The union is calling for an immediate halt to further job cuts and demands greater government accountability.
CRA Staffing Trends Over the Years
The number of CRA employees has decreased to 52,499 in 2025 from 59,155 in 2024, reflecting recent layoffs. Despite this, the workforce remains approximately 20% larger than in 2019 when the agency employed 43,908 people. CRA officials attribute budget pressures to factors including the conclusion of COVID-related program funding.
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The Bigger Picture: Federal Public Service Workforce Shrinking
Data indicates the federal public service workforce shrank by nearly 10,000 employees between 2024 and 2025, marking the first decrease in a decade. This reduction follows a period of steady growth, particularly during the COVID-19 pandemic when staffing expanded rapidly to meet new demands.
Conclusion: The Road Ahead for CRA and Federal Employees
The Canada Revenue Agency and other federal departments face difficult choices as budget pressures mount. Workforce reductions are reshaping how government services are delivered, while employee morale and service quality are under increasing strain. The unfolding changes call for innovation, strategic reassessment, and clear communication to ensure Canadians continue receiving critical public services amid these challenges.