Minister says ‘attrition is the objective,’ but ‘adjustments’ coming to federal public service

Minister Joel Lightbound on Canada Post overhaul, job loss concerns, cutting costs, and claims of targeting the union.

Government Transformation, Public Works and Procurement Minister Joël Lightbound says while the federal government plans to reduce the size of the federal public service through attrition, he also concedes “there will be adjustments.”

“The objective is through attrition, but there will be adjustments,” Lightbound said in an interview with CTV Power Play on Thursday when asked by host Vassy Kapelos if attrition will be enough to meet his government’s stated spending reduction targets.

Lightbound’s comments come after Prime Minister Mark Carney insisted earlier this month that any cuts to the federal public service would “happen naturally through attrition.”

In August, Lightbound also told reporters the “intention is to go through attrition.”

The federal government is currently putting together its Nov. 4 budget, which Carney has described as one of both “austerity” and “investment.” That description has prompted some to question whether that “austerity” could result in job cuts, amid billions of dollars in new spending commitments for defence and tariff supports.

The Liberal election platform also pledged to cap and not cut the federal public service, and eliminate $15 billion a year by 2028 to bring revenues in line with operational spending.

Meanwhile, Finance Minister François-Philippe Champagne, along with Treasury Board President Shafqat Ali, asked ministers over the summer to find up to 15 per cent in savings in day-to-day operational spending over the next three years.

While the federal public service decreased by approximately 10,000 employees in 2025 compared to 2024, federal personnel spending increased by about $1.5 billion, according to an August report from the Parliamentary Budget Officer (PBO).

Asked by Kapelos if spending will decrease on the public service, Lightbound said, “We’ll have to wait until the budget is presented.”

“All departments have come up with plans in terms of expenditure review and how they can be more efficient, find some gains and efficiencies. It’s under review now by the minister of finance. I’m helping him in that task, but it’ll have to wait until November 4,” Lightbound added.

Concerns surrounding the federal government’s bottom line was also a major focus on Parliament Hill on Thursday, after the PBO released its new economic and fiscal outlook that shows a sharp increase to the deficit in the upcoming fall budget.

Interim PBO Jason Jacques now projects Ottawa will post an annual deficit of $68.5 billion this year, up from $51.7 billion last year.

“It’s not a funny fiscal outlook. It’s a really serious fiscal outlook,” Jacques said while testifying at the Government Operations and Estimates committee on Thursday.

“We don’t lightly use the word unsustainable, right? Unsustainable means you don’t have the option of saying, maybe I’ll wait a couple of years, I’ll see how things go. It means, if you don’t change, this is done.”

Lightbound would like Canada Post to cut management by ‘nothing less than 15 per cent’

On Thursday, Lightbound also announced major changes to Canada Post and how service is delivered, including changes to letter mail delivery standards, lifting the moratorium on community mailbox conversions, and lifting the moratorium on rural post offices.

Since 2018, Canada Post has lost more than $5 billion and is expected to lose $1.5 billion in 2025.

Speaking to Kapelos, Lightbound said he’s asked management to review its structure and overhead costs.

“I’ve asked them to provide me with a plan. I’m hoping nothing less than 15 per cent. Probably more along the lines of 15, 20 per cent. If more, all the better because of the financial situation,” he said.

You can watch the full interview with Government Transformation Minister Joël Lightbound at the top of this article.