Why is Service Canada cutting 800 jobs?
Service Canada is set to lay off 800 workers across the country, citing a major drop in passport demand as the reason behind the decision. Starting in June 2025, the agency will begin adjusting its workforce in response to updated funding levels and a new forecast showing fewer Canadians will apply for passports in the coming year.
What’s behind the drop in passport applications?
Projections from Immigration, Refugees and Citizenship Canada (IRCC) suggest that passport volumes for 2025–2026 will be “significantly lower” than those in the previous year. With fewer people planning international travel, the need for passport services is shrinking.
Canadians, it seems, are embracing local travel. According to a March report by OAG, a global travel data firm, the number of Canadians heading to the U.S. during peak summer months dropped by a staggering 70 per cent. More are choosing to vacation closer to home.
Will this impact passport wait times?
Despite the cuts, Employment and Social Development Canada (ESDC) insists passport processing times won’t be affected. In fact, since April 1, 2025, Service Canada says it has consistently exceeded its service standards, processing 99% of complete applications on time.
The department claims it has systems in place to track performance and handle unexpected surges in applications, ensuring that operations remain stable even with fewer staff.
What support is being offered to affected workers?
Employees impacted by the layoffs are already being notified and are receiving direct support from the department. ESDC emphasized that the decision wasn’t made lightly and was necessary to balance revenues and costs including wages in line with federal budget requirements.
What does this mean for Canadians?
If you’re planning to travel in the next year, there’s good news, your passport application shouldn’t face delays despite the staffing cuts. But for those working at Service Canada, especially term employees across all provinces and territories, the news is a sharp and sudden shift in job security.
Laid Off from Service Canada? Know Your Rights.
If you’re one of the 800 employees affected by Service Canada’s upcoming job cuts, it’s crucial to understand your legal rights especially when it comes to severance pay.
In Ontario, non-unionized federal employees may be entitled to more than what’s initially offered. Severance isn’t one-size-fits-all, it depends on several key factors, including your age, position, salary, and years of service. In some cases, employees could be owed up to 24 months’ compensation.
At Whitten & Lublin, our employment lawyers have extensive experience helping public and private sector workers navigate terminations and layoffs. If you’ve been impacted by the Service Canada downsizing, call us at (416) 640-2667 or reach out online for consultation.