Canada Post given 45 days to chart path forward amid $1B annual losses

Canada Post has 45 days to present a plan to modernize its operations after the federal government unveiled a series of recommended changes to the postal system last week.

In a letter to Canadians, president and CEO Doug Ettinger said the corporation is losing about $1 billion a year as mail volumes continue to decline and private companies dominate parcel delivery. He warned the current model is not sustainable and risks placing an increasing burden on taxpayers.

Ettinger said fewer than one in four Canadian households still receive door-to-door delivery, with most already relying on community mailboxes. Expanding that model, while maintaining the delivery accommodation program for those with accessibility challenges, would generate “significant savings,” he said.

He also pointed to the need to update the list of rural post offices, which has not changed since 1994. Many listed locations are now in suburban or urban areas with multiple postal outlets nearby, he said, while reaffirming a commitment to maintain services in rural, remote, northern and Indigenous communities.

With thousands of employees expected to retire over the next five years, Ettinger said Canada Post has an opportunity to reduce staffing levels without mass layoffs. He added that new collective agreements must reflect the corporation’s financial reality while supporting changes needed to restore self-sustainability.

“The journey to restore and renew the postal service is now under way,” Ettinger wrote. “Our goal is to provide an affordable, reliable and sustainable service to every Canadian — one that lifts our national pride by strengthening our connections to each other.”