Canada Revenue Agency cutting 210 jobs in the coming months

The Canada Revenue Agency sign outside the National Headquarters at the Connaught Building in Ottawa is seen on Monday, March 1, 2021. (THE CANADIAN PRESS/Justin Tang)

The Canada Revenue Agency expects to cut up to 210 employees in the coming months as it implements changes as part of the federal government’s comprehensive expenditure review.

Federal unions said that more than 450 members received notices on Tuesday that their jobs may be at risk. The Union of Taxation Employees said the affected employees work at the Canada Revenue Agency headquarters in Ottawa and in regions across the country.

• Latest information on federal public service, including notices, job cuts, return to office rules and more

On Thursday, a spokesperson for the Canada Revenue Agency told CTV News Ottawa that more than 200 positions will be cut, with the workforce adjustments “mainly linked” to the winding down of the Federal Fuel Charge.

“The Canada Revenue Agency is taking bold action to improve service delivery to Canadians by reinvesting savings derived through the comprehensive expenditure review (CER) — from improving the efficiency of operations and winding down or eliminating programs that are no longer aligned with government priorities — into strengthening and modernizing the Agency’s core functions,” the CRA said in an email.

“On March 31, the CRA informed employees about its decision to implement workforce adjustments (WFAs). Both executive and non-executive roles are impacted. Over the coming months, this is anticipated to result in up to 210 employees leaving the CRA.”

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.”

The CRA said, “It anticipates no disruption in service to Canadians.”

“Throughout this process, the CRA remains dedicated to minimizing impacts on employees and to protecting services that Canadians depend on,” the agency said. “The CRA will continue advancing long-term improvements to ensure a modern, accessible, and efficient tax system.”

‘Bad news’

The Public Service Alliance of Canada (PSAC) said 284 members of the Union of Taxation Employees (UTE) received notices, while the Professional Institute of the Public Service of Canada (PIPSC) said 195 of its members received a workforce adjustment notice.

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.”

• Sign up now for daily CTV News Ottawa newsletters
• The information you need to know, sent directly to you: Download the CTV News App