Canada Post Reports Worst Quarter in History
Postes Canada recently reported its worst quarterly loss in history, amounting to $541 million before taxes, during the third quarter of 2025. This financial setback marks the company’s significant ongoing struggles. They have disclosed intentions to reassess their delivery timelines and downsize personnel in response to these challenges.
Continued Financial Losses
This announcement follows a series of losses that have persisted for eight consecutive years, with 2025 projected to be the worst yet. Last year, in 2024, Postes Canada recorded an operational loss of nearly $1.3 billion. Thus far in 2025, losses have already surpassed $1 billion, a sharp increase from $800 million at the same time last year.
Causes of Financial Strain
According to Rindala El-Hage, Chief Financial Officer of Postes Canada, the organization faces a critical juncture. She emphasized that “the status quo is no longer viable.” André Hudon, the Chairman of the Board, echoed this sentiment, stressing the importance of preventing the company from becoming a burden on taxpayers. The primary factors contributing to this dire financial situation are a notable decline in mail volume and the impact of labor disputes on parcel deliveries.
- In 2006, Canadian households received an average of seven letters weekly.
- By 2024, this number dwindled to just two letters per week.
- Labor disputes reportedly led to a loss of $208 million for Postes Canada in its annual financials.
Hudon mentioned that the company has lost numerous clients during negotiation periods, leading to a lack of confidence in their services. As a result, he called for decisive action to improve Postes Canada’s financial position.
Government Intervention and Future Plans
In late September, Joel Lightbound, the Minister of Government Transformation, Public Works, and Procurement, mandated Postes Canada to submit a recovery plan within 45 days. Although the organization has submitted this plan, it has yet to disclose specific details. However, Postes Canada has identified several strategic directions to mitigate losses.
Service Standard Revisions
Among the changes proposed, the company plans to revise its service standards. The new timeline suggests that the delivery of letters will take between 3 to 7 business days, depending on the distance. This replaces the previous delivery timeframe of 2 to 4 days. Notably, parcel deliveries will remain unaffected by these adjustments.
Workforce Reduction Strategies
To manage costs, CEO Doug Ettinger indicated the need to reduce the workforce of approximately 68,000 employees. He pointed out a surplus of personnel and stated that attrition would be prioritized for these reductions. The company anticipates that around 16,000 employees will retire by 2030, with an additional 14,000 expected to retire by 2025.
Currently, salaries and benefits account for 65% of Postes Canada’s operating expenses. The organization also intends to expedite the transition to community mailboxes, where delivery costs are significantly lower. Presently, about one in four households still receives mail at home, which is nearly double the expense of community mailbox delivery.
Regulatory Developments
Lastly, Postes Canada welcomes the federal government’s proposal to revise regulations concerning postal rates. This initiative, outlined in the Champagne budget, would allow the company to set its rates without undergoing a lengthy regulatory process. Ettinger assured stakeholders that any rate increases would be fair and reasonable.
