Work can now begin to save taxpayers money and build a financially sound postal service
OTTAWA, ON, Sept. 25, 2025 /CNW/ - Today's announcement by the Government of Canada will allow our country's national postal service to chart a strong, financially sustainable path forward that supports the changing needs of Canadians.
Letter mail has been steadily declining for almost two decades, down from 5.5 billion letters in 2006 – Canada's peak mail year – to two billion letters last year, and that erosion will continue. At the same time, the country's population has grown by nearly one-third, meaning there are millions more households to deliver mail to each day.
This combination of delivering fewer letters to more addresses has led to increased service costs, declining revenues and mounting financial losses. Canada Post recently reported a second-quarter loss of $407 million, marking the Corporation's largest loss before tax in a single quarter. From 2018 to the second quarter of 2025, the company has posted cumulative losses from operations of more than $5 billion.
In mid-2025, with losses mounting, Canada Post began receiving cash injections from the Government of Canada to ensure the company could continue operating. Without significant changes, these losses will continue and will be borne by taxpayers, which is not sustainable. Canadians cannot continue to pay more through their taxes for a service they use less and less.
The Industrial Inquiry Commission (IIC) report in May 2025 from Commissioner William Kaplan put it simply: "Canada Post is facing an existential crisis: It is effectively insolvent, or bankrupt. Without thoughtful, measured, staged, but immediate changes, its fiscal situation will continue to deteriorate."
Statement from Canada Post President and CEO Doug Ettinger:
"Today's announcement will allow us to make the changes needed to restore Canada's postal service for all Canadians by evolving to better meet their needs. We take this responsibility seriously and will work closely with the government and our employees to move with urgency and implement the necessary changes in a thoughtful manner. Our goal is to ensure that a strong, affordable, Canadian-made, Canadian-run delivery provider supports the needs of today's economy and delivers to every community across the country."
Background
The need for the reforms announced by the government, and recommended in the Kaplan report, are detailed in Canada Post's 2024 Annual Report and IIC submission.
SOURCE Canada Post
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