Canada Post is on the brink of financial collapse, losing nearly $10 million every day, according to a statement today from Joël Lightbound, Minister of Government Transformation, Public Works and Procurement.

Since 2018, the Crown corporation has posted over $5 billion in losses. It lost $1 billion in 2024 and is projected to lose another $1.5 billion in 2025, despite a $1-billion emergency funding injection earlier this year. The second quarter of 2025 alone saw a record $407-million loss — the worst in Canada Post’s history.

In response, the federal government is launching a series of reforms to overhaul the institution which has been serving Canadians for more than 150 years but is suffering from a dramatic decline in traditional mail and parcel delivery volumes.

Key Changes Announced:

• Letter Mail Delivery Standards: With Canadians now receiving just two letters per week on average, Canada Post will begin routing more non-urgent mail by ground instead of air, saving an estimated $20 million annually.
• Door-to-Door Mail: The government is lifting its long-standing moratorium on converting door-to-door delivery to community mailboxes. Roughly one-quarter of households still receive door-to-door service; converting the remaining 4 million addresses could save up to $400 million annually.
• Post Office Closures: A 30-year moratorium on rural post office closures will also be lifted. The current designation covers nearly 4,000 locations, many of which are now suburban or urban but remain bound by outdated rural service rules. Canada Post will be required to submit a plan to modernize and streamline its network.
• Stamp Rate Reform: The government will also review and modernize the process for adjusting stamp prices, in line with recommendations from a federal inquiry led by Commissioner William Kaplan, released earlier this year.

The reforms follow the May 2025 report from the Industrial Inquiry Commission, which outlined urgent steps to modernize the service.

While the government is removing key legislative and policy barriers, Lightbound emphasized that internal reform and leadership within Canada Post will be critical. He urged the corporation to take “decisive action” to modernize operations and reduce costs, in line with broader federal efforts to spend more efficiently.

“Canadians deserve a service that is reliable, affordable, and sustainable – and today’s announcement is the first step toward securing that future.”said Lightbound.

Canada Post President and CEO Doug Ettinger issued a statement supporting the changes.  “Today’s announcement will allow us to make the changes needed to restore Canada’s postal service for all Canadians by evolving to better meet their needs. We take this responsibility seriously and will work closely with the government and our employees to move with urgency and implement the necessary changes in a thoughtful manner. Our goal is to ensure that a strong, affordable, Canadian-made, Canadian-run delivery provider supports the needs of today’s economy and delivers to every community across the country,” he said.

~Image by Calvin Hanson from Pixabay