CRA has ‘hit rock bottom,’ but secretary of state noncommittal on future job cuts

Secretary of State for the Canada Revenue Agency and Financial Institutions Wayne Long discusses job cuts at the CRA and plans to cut unnecessary spending.

Secretary of State Wayne Long, who oversees the Canada Revenue Agency (CRA), is describing service delays with the agency as “completely unacceptable,” but won’t commit “one way or the other” on the potential for future job cuts.

“Let’s call a spade a spade. We hit rock bottom. It can’t get much worse than it is now,” Long said in an interview with CTV Power Play with Vassy Kapelos on Monday.

Earlier this month, Long and Finance Minister François-Philippe Champagne instructed the CRA to launch a 100-day plan to improve services in response to significant delays Canadians have been experiencing with the agency.

The union representing CRA workers says more than 3,000 jobs have been cut since 2024, including debt collector and call centre positions. According to figures from the Treasury Board of Canada Secretariat, the CRA employed 52,499 people in 2025, compared to 59,155 in 2024.

“If this was a call centre selling hotel rooms, (the CRA would) be out of business, and heads would roll,” Long said. “I take the same approach to what’s happening at the CRA. It’s not sustainable.”

The ongoing service issues at CRA come as Prime Minister Mark Carney is looking to put together his first federal budget, which he says will focus on both austerity and investment.

Over the summer, ministers were tasked with finding savings of up to 15 per cent in day-to-day spending over the next three years.

When asked last week by reporters about the potential for public services cuts, Champagne acknowledged “there’ll be adjustments in different places.”

“I think a leaner and more efficient government to provide services to Canadians, that is needed as you’re looking to rebuild this nation,” Champagne added.

Asked by Kapelos whether further jobs cuts at CRA are on the horizon, Long would not say.

“With respect to cuts, I can’t commit to one way or the other. I’m not going to prejudge the review process,” Long said.

Long also pledged that service at the CRA “will not get worse.”

“This is systematic failure. People are waiting too long. Agents are overrun. We’ve obviously had an increase in population. Tax filings are more complicated. We will get this right,” Long added.

The federal government is expected to table its long-anticipated budget in October.

Carney has faced questions over how he will reach his election promises of “capping, not cutting” the public service and balancing operational spending by 2028, while also spending billions of dollars on defence and tariff supports.

When pressed by Kapelos on what federal spending is on the chopping block, Long said “everything is being reviewed” and Canada needs to get its “fiscal house in order.”

“Don’t prejudge the process. We are going through it line by line by line. We will get this right,” Long said, while adding that the Liberal government is not “going to slash and burn” programs.

In a statement to CTV News, the Union of Taxation Employees says “it’s fair to say that the situation at the CRA has hit rock bottom,” and is warning against future cuts at the agency.

“In our opinion, it is impossible to improve the service while proceeding with such deep cuts at the CRA. We are demanding that the Finance Minister reinvest significant amounts of money in its upcoming budget in October in order to hire employees to stop the bleeding and improve service,” the statement goes on to say.

You can watch the full interview with Secretary of State Wayne Long at the top of this article