Canada Post Faces Severe Financial Crisis, Seeks Further Bailout

Canada Post is grappling with a significant financial crisis, announcing that it will require another bailout by early 2026. The Crown corporation, which began the year with a federal loan of $1 billion, reported a historic quarterly loss on November 21, 2025, amid fierce competition in the parcel delivery market and ongoing disruptions from a protracted labour dispute.

In its latest quarterly report, Canada Post revealed a staggering loss of $541 million before taxes for the third quarter, marking a dramatic increase of 72 percent from $315 million in the same period last year. The organization attributed these unprecedented losses to a decline in revenue, largely driven by ongoing strike actions involving its 55,000 mail carriers.

Revenue from parcel deliveries, which was previously the most profitable segment, plummeted by 40 percent to $450 million. This decline occurred alongside a reduction in volume of 27 million pieces, resulting in parcel sales falling below those of traditional mail delivery. The letter volume has been in decline for nearly two decades, further complicating Canada Post’s financial landscape.

As Canada Post continues to face challenges, it has indicated that it will need to access short-term financing options or implement additional measures to maintain solvency over the next year. The company’s fiscal troubles have raised critical questions about its business model, particularly as losses have exceeded $5.5 billion since 2018.

In a statement, Canada Post acknowledged the deteriorating financial situation, noting that ongoing uncertainty and strike activity have driven customers toward competitors for their delivery needs.

“Canada Post’s financial situation continued to deteriorate in the third quarter,”

the company stated, emphasizing the urgency of addressing these challenges.

The bargaining negotiations with the Canadian Union of Postal Workers have now extended beyond two years, coinciding with the approach of the busy holiday season. Canada Post’s Chief Executive Officer, Doug Ettinger, recently indicated that the company anticipates losing up to 30,000 employees over the next decade due to retirements and voluntary departures, as efforts are made to control costs.

In September, Federal Procurement Minister Joël Lightbound introduced a set of changes aimed at helping Canada Post adapt its business model. These changes include adjustments to mail delivery standards, the closure of some rural post offices, and an expansion of community mailbox services to more areas. Earlier this month, Canada Post submitted a proposal to the federal government to capitalize on these changes, although the specifics of that proposal remain confidential while under review by Ottawa.

In the first nine months of 2025, Canada Post reported a loss of $989 million, compared to $345 million during the same timeframe the previous year. The majority of these losses occurred in the second and third quarters, reflecting the detrimental impact of labour unrest on the corporation’s operations.

As Canada Post navigates these tumultuous waters, the future remains uncertain. The combination of declining letter volumes, competition from other delivery services, and ongoing labour disputes poses significant challenges to the organization’s sustainability and ability to serve its customers effectively.