Canada Post is facing its worst financial crisis in history after reporting a $541-million loss before tax in the third quarter, with labour uncertainty and strike activity pushing customers to competitors and dragging parcel revenues down nearly 40%.The corporation’s cumulative loss from operations now exceeds $1 billion in the first nine months of 2025, far surpassing last year’s figures. Canada Post recorded a $989-million loss before tax year-to-date, up from $345 million in the same period of 2024, with most losses incurred in the second and third quarters as service disruptions scared off clients.Ongoing disputes with the Canadian Union of Postal Workers (CUPW) have prevented the signing of new collective agreements. The uncertainty has hit Parcels and Direct Marketing revenue hardest, while Transaction Mail benefited slightly from stamp price increases and election-related mailings. Parcels revenue in the third quarter dropped $297 million, or 39.8%, on a 42.5% decline in volumes, while year-to-date revenues fell $779 million, or 33%. Direct Marketing revenue dropped 18.5% in the third quarter..Canada Post has begun receiving federal cash injections, with $755 million paid in the third quarter and a total of $1.034 billion earmarked for the 2025–26 fiscal year to cover operating expenses. The corporation warns it will need additional short-term financing to maintain solvency due to continued labour disruptions.The Crown corporation is also moving forward with a transformation plan to modernize operations. Measures include updating letter mail delivery standards, converting remaining home delivery to community mailboxes, modernizing the retail network, and streamlining the process for regulated stamp price increases. Officials say these changes could save hundreds of millions of dollars annually while ensuring services remain reliable and universal.Operating costs fell slightly in the first nine months, down 1.5% year-over-year, but wage increases and inefficiencies offset some savings. The Canada Post Group of Companies, including Purolator, recorded a combined $908-million loss before tax in the first nine months, although Purolator itself remained profitable.
