Finance Minister François-Philippe Champagne says Ottawa is preparing to shrink the federal payroll this fall, warning Canadians to expect “adjustments” in the 440,000-employee public service.Blacklock's Reporter says Champagne would not confirm the number of positions at risk but said the Carney government must act to make operations more efficient after years of growth in the bureaucracy.“Will there be tough choices to make? Definitely. Is the nation ready? I would say yes,” Champagne told reporters, adding that Canadians have been forced to tighten their belts and it was time government did the same.He said the review of payroll spending was ordered by both himself and Prime Minister Mark Carney, but offered no details on how deep cuts might go..The last time Ottawa undertook sweeping layoffs was in 1995, when then-finance minister Paul Martin eliminated 45,000 jobs — about 14% of the federal workforce — while privatizing CN Rail, slashing foreign aid 21% and shutting down 73 agencies.Champagne said the current exercise was unavoidable: “People understand they need to meet the moment. This is not an option. We need altogether to make sure we find the savings we need in order to be able to spend more.”The finance minister repeated that Ottawa would pursue “a leaner and more efficient government,” while reporters pressed him on whether austerity would include job cuts. .“You will find adjustments,” Champagne replied, adding that hiring had ballooned in recent years.According to the Parliamentary Budget Office, federal payroll costs reached $71.1 billion for 438,600 employees in 2023. Treasury Board figures put the broader total, including the RCMP, military and Crown corporations, at $84.9 billion for 611,874 employees.“Between 2017 and 2023 the core public administration has grown consistently,” Treasury Board noted in its 2024 Transition Briefing Book. Champagne said Canadians now expect Ottawa to reverse that trend.
