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The federal government is in the midst of mass layoffs on a scale not seen in years, following Prime Minister Mark Carney‘s promise to shrink a bureaucracy that had grown by an estimated 40 per cent over 10 years.
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As part of its cost-cutting plan, the Liberal government began issuing layoff notices to public sector workers last month, with the goal of trimming the federal workforce by about 40,000 jobs by the end of 2029.
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Here, the Financial Post looks at which departments are most affected and what the impact of the cuts might be.
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How many federal workers have been laid off so far?
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Data from the three major federal public service unions — Professional Institute of the Public Service of Canada (PIPSC), Public Service Alliance of Canada (PSAC) and the Canadian Association of Professional Employees (CAPE) — suggest more than 22,000 workers across nearly 40 departments have been handed “workforce adjustment” letters (WFAs) since the federal budget was presented in November.
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WFAs let an employee know that their position is under review and may be affected by budget cuts, restructuring, the introduction of new technologies, etc. It is the first step in the layoff or reassignment process, as per public sector collective agreements.
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Last week the federal government made its biggest cuts yet, sending home thousands of employees, according to the unions.
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Departments with more than 2,000 layoffs
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Three federal departments or agencies have lost more than 2,000 employees since the November budget, led by Statistics Canada with 3,205. CAPE said 1,906 of its members were part of the cull.
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“The Harper era cuts to StatCan represented a hostile attitude towards facts and reality,” CAPE said on Jan 13. “Mark Carney’s government seems to be taking us in the same direction.”
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Employment and Social Development Canada, the department responsible for such programs as Employment Insurance, CPP, and family, housing and disability benefits, has lost 2,665 employees to the cuts, including members of all the major unions. Another 1,400 members of the Canada Employment and Immigration Union (CEIU) were issued notices last week.
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In total, the CEIU estimates that the ESDC will lose 5,313 workers and 98 executives as part of the cuts.
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“Canadians are struggling to get by and these programs are often a lifeline for people, businesses and communities,” Rubina Boucher, CEIU national president, said in a statement. “Carney is cutting at a time when these programs matter most.”
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Global Affairs Canada experienced the third highest number of layoffs, with 2,399, mostly from the PSAC.
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“These are the services that keep the country functioning, often behind the scenes,” Alex Silas, trustee of the Union of National Employees, a member of the PSAC, said in a statement. “When you slash these jobs, it creates backlogs in immigration, slows economic programs, and makes every part of government work harder.”

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