The federal government is authorizing Canada Post to reduce door-to-door mail delivery and expand the use of community mailboxes as part of a plan to stabilize the Crown corporation’s finances.At a press conference Minister Joël Lightbound said Ottawa is lifting the requirement that Canada Post deliver letter mail to every address five days a week. Non-urgent mail can be routed by ground instead of air, a change the government says will save more than $20 million annually.Ottawa is also ending the moratorium on converting home delivery to community mailboxes. Officials said about 77% of Canadians already do not receive mail at their door, instead using community or rural boxes or building mailrooms.Canada Post is now authorized to convert approximately 4 million additional addresses over time, a nine-year rollout, with most conversions occurring in the next four years. The government estimates these conversions will save nearly $400 million per year once fully implemented..To illustrate cost pressures, the minister said delivering to an individual address costs the corporation about $279 per address per year, compared with about $158 for a community mailbox.The government is also lifting a separate “rural moratorium,” introduced in 1994 and covering roughly 3,962 locations, which has prevented closures or changes at post offices that were rural three decades ago but are now suburban or urban. Ottawa stressed that Canada Post’s obligation to serve all communities, including rural, remote and Indigenous areas, will not change. Canada Post has been directed to return with a plan to protect service levels in those communities.Other steps include modernizing and speeding up the process for stamp-price adjustments, and accepting all recommendations directed to government from an Industrial Inquiry Commission report led by William Kaplan (released May 15). Canada Post has 45 days to present a plan to reduce costs, including a “cold, hard look” at management structure and broader efficiencies. Workforce changes are expected to be phased, with some reductions occurring through attrition. The minister said Canada Post’s pension is fully funded..Financial context and rationaleLosses since 2018: more than $5 billion.2024 result: $1.3 billion operating loss; a $1 billion cash injection in January was required to keep the corporation afloat.Q2 2025: $407 million loss, described as the worst quarter on record.Current burn rate: approximately $10 million per day.Projected savings from announced measures: close to $500 million per year when fully in place, which the minister said is necessary but not sufficient to restore viability.The minister linked the crisis to structural shifts: letter-mail volumes have fallen from 5.5 billion items 20 years ago to about 2 billion today, even as the number of delivery addresses has grown. In parcels, Canada Post’s market share has dropped from 62% in 2019 to under 24%, with private competitors gaining ground through faster and more flexible services..Impact on CanadiansLightbound said the delivery-frequency change will be driven by operational needs and mail volumes, not implemented “overnight.” Canada Post will notify affected residents as conversions proceed and will publicize assistance programs for seniors and people with disabilities who have difficulty accessing community mailboxes, continuing an approach used in past conversions.Asked whether the reforms end federal bailouts, the minister said cash injections may still be required, but emphasized there are limits and that Canada Post must show a credible path to financial viability.
