Canada’s national postal service has published its most recent financial report, revealing a staggering $1.57 billion in losses last year before taxes, marking its worst performance on record. The Crown corporation is currently heavily indebted and is being propped up by $2 billion in federal loans to remain operational.
In a statement released on Monday, Canada Post emphasized the critical need to modernize and adapt to the evolving demands of the country in light of its dire financial situation. The $1.57 billion loss in 2025 represents a significant increase from the $841 million loss reported in the previous year.
The postal service attributes its financial challenges in 2025 to a combination of factors, including disruptions caused by labor strikes and regulatory constraints that hindered its ability to compete with private mail carriers. Parcel revenue and volumes plummeted by over 30% during the same period.
The financial turmoil coincides with the ongoing voting by members of the Canadian Union of Postal Workers (CUPW) on a new collective agreement. The postal service and CUPW recently concluded a prolonged labor dispute that involved nationwide strikes, severely impacting mail delivery just before the busy holiday season.
Jon Hamilton, a Canada Post spokesperson, acknowledged the continued financial losses in 2026, attributing part of the decline to the loss of key customers who have turned to competitors due to uncertainty. The postal service, which aims to be self-sustaining through its services, has recorded losses totaling $6.1 billion since 2018.
To address its financial challenges, Canada Post is undergoing a comprehensive restructuring process aimed at restoring its financial viability, a transformation expected to unfold over several years. As part of this initiative, the postal service announced plans to transition four million addresses still receiving door-to-door delivery to community mailboxes within the next five years, anticipating annual savings of $400 million and a 30% reduction in depot workforce.
In response to these changes, CUPW criticized Canada Post’s actions as detrimental to its workers and characterized them as an attack on labor. The union called for a halt to the planned reforms, arguing that slashing jobs and services nationwide would not resolve the postal service’s underlying issues.