Why Service Canada Is Cutting 800 Jobs in 2025
Service Canada is preparing for a significant staffing adjustment as projections show a steep decline in passport applications through 2025 and into 2026. The government agency announced it will be cutting approximately 800 term positions across the country, starting in June 2025.
This move follows a forecast by Immigration, Refugees and Citizenship Canada (IRCC), which anticipates passport demand will be notably lower compared to the previous year. Employment and Social Development Canada (ESDC), which oversees Service Canada, confirmed that the workforce reduction is directly tied to these declining application volumes.
A spokesperson for ESDC told Daily Hive via email that the department “regularly ensures workforce levels align with forecasted volumes” and emphasized that adjustments are essential to match budgeted funding. “As a federal department, we must ensure revenues balance with costs, including salaries,” they stated.
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Impact of Layoffs: Who’s Affected and Where
The job cuts will affect Service Canada employees in every province and territory. Term workers, who are typically on limited contracts and not permanently employed, will be the ones impacted. These employees have already begun receiving notices and are being offered direct support as they transition out of their roles.
“This decision was necessary and not taken lightly,” ESDC said in their statement, acknowledging the toll such layoffs can take on individuals and communities.
Will Passport Services Slow Down?
Despite the reduction in staffing, ESDC is assuring Canadians that passport processing times will not be negatively affected. Since the beginning of April 2025, Service Canada has reportedly exceeded its service standards.
According to ESDC, 99 percent of complete applications are currently being processed within standard timelines, far surpassing the target of 90 percent. “We have systems in place to monitor performance, respond to unexpected surges in demand, and adapt to changing client needs,” the department stated.
Why Passport Applications Are Dropping in Canada
One key factor driving the lower passport demand is a shift in travel behavior among Canadians. A March report from OAG, a global travel data firm, found that international travel—particularly to the United States—has dropped dramatically. The number of Canadians traveling to the U.S. during peak summer months has fallen by 70 percent.
With more citizens opting for domestic vacations and fewer planning trips abroad, passport renewals and new applications are naturally declining.
What This Means for Canada’s Travel and Employment Landscape
This change highlights how shifting travel trends can have broader ripple effects, from job losses to adjustments in public services. As more Canadians choose to explore within their own borders, the demand for travel-related documents like passports naturally decreases.
While the layoffs are a stark reminder of how policy and projections drive staffing decisions, Service Canada is standing by its ability to maintain strong service standards. For now, the message from the federal agency is clear: fewer passports doesn’t mean slower service—but it does mean fewer jobs.