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Over 9,000 Public Service Employees Vanish, Tax Season Struggles Amid CRA Crisis
A dramatic reduction in the federal public service workforce has left Canada grappling with the fallout, particularly during the tax season. Nearly 10,000 positions were shed between 2024 and 2025 due to government initiatives aimed at fiscal restraint and efficiency efforts. The Canada Revenue Agency (CRA), a primary target, lost 6,656 jobs, making up approximately 68% of the overall workforce decrease[1][2][3].
This drastic move has had a notable impact on tax season processing. Thousands of layoffs have resulted in extended wait times, unanswered phone calls, and a mounting backlog of files, raising uncertainty for citizens regarding their tax status. The remaining staff are stretched thin, handling increased workloads with reduced resources[2][4]. Marc Brière, National President of the Union of Taxation Employees, notes the strain on CRA employees and the potential consequences for the public and businesses[1][2].
The CRA has not only faced internal challenges but also problems with temporary workers. Contracts have gone unrenewed, and layoffs have affected call center staff, worsening the situation during tax season[5]. This government-led push for budget cuts has resulted in the first decrease in the federal public service workforce in a decade, signaling a shift towards fiscal austerity[2].
[1] Source for "Marc Brière, National President of the Union of Taxation Employees"[2] Source for "marking a shift towards fiscal austerity"[3] Source for "The Canada Revenue Agency (CRA) lost 6,656 positions"[4] Source for "The remaining staff are under immense pressure"[5] Source for "The CRA has not only faced internal challenges but also problems with temporary workers"
The Canada Revenue Agency (CRA) is facing an increased reliance on technology and artificial-intelligence, as numerous layoffs have left them understaffed during the tax season. The strain on remaining employees and the potential consequences for the public and businesses are becoming more evident, as the CRA struggles to process returns efficiently.
