More than 450 workers at the Canada Revenue Agency (CRA) have received notices this week that their jobs may be at risk.
The Public Service Alliance of Canada (PSAC) says 284 of its members at CRA received affected notices on Tuesday, while the Professional Institute of the Public Service of Canada (PIPSC) said 195 of its members received a workforce adjustment notice.
CTV News Ottawa has reached out to the Canada Revenue Agency for information on potential job cuts at the department.
The Union of Taxation Employees said the government notified employees in four branches that their positions have been identified as affected.
“This is largely due to the government eliminating taxation programs such as the Digital Services Tax, the Federal Fuel Charge, the Canada Carbon Rebate for individuals and for businesses, the Underused Housing Tax and the luxury tax on aircraft and vessels,” the union said.
“The affected employees work at CRA Headquarters in Ottawa and in the regions across the country.”
$1.2B in spending reductions
The Canada Revenue Agency’s 2026-27 departmental plan shows the agency is planning $1.2 billion in spending reductions over three years as part of the government’s comprehensive expenditure review.
“The CRA will achieve these reductions by modernizing its administrative approach to enable greater productivity, and winding down its business units that are no longer connected to government priorities,” said the departmental plan.
“This includes the Digital Services Tax, the Federal Fuel Charge, and the Canada Carbon Rebate (CCR) for individuals and for businesses. In Budget 2025, the government also proposed to eliminate the inefficient Underused Housing Tax and luxury tax on aircraft and vessels, which will result in administrative savings.”
‘Bad news’
The Union of Taxation Employees said the announcement of job cuts “doesn’t come as a surprise,” noting the program cuts were identified in November’s federal budget.
“Nonetheless, it is bad news, more potential job losses, and we fully understand that those directly impacted are feeling immense stress and uncertainty about what comes next,” Marc Brière, president of the Union of Taxation Employees, said in a statement.
“Our union strongly opposes these potential job losses in the public service.”
PIPSC warns workforce cuts at the Canada Revenue Agency will “weaken the government’s ability to enforce tax laws and recover billions in lost revenue.”
“These are the people who make sure everyone pays their fair share,” PIPSC President Sean O’Reilly said in a statement.
“Cutting them doesn’t save money. It costs money.”
According to the departmental plan, the size of the Canada Revenue Agency will drop from 53,585 employees in 2024-25 to 49,498 employees in budget year 2026-27 and 48,807 employees by 2028-29.
The Canada Revenue Agency says the reduction in FTEs between 2026-27 and 2028-29 is primarily due to the “decrease or sunsetting of funding to implement and administer various measures announced in the federal budgets and economic statements.”
