CRA notifies 735 employees of potential job cuts ahead of tax season

The Canada Revenue Agency (CRA) has notified 735 executive and non-executive employees that their positions may be affected by a new round of workforce adjustments. According to the agency, up to 260 employees are expected to leave the agency in the coming months, coinciding with the period when Canadians begin collecting tax slips for the 2026 tax year.

Details of the workforce adjustments

The CRA stated it provided guarantees of continued employment to 110 of the affected employees, primarily in compliance roles. "This supports the retention of employees in areas that continue to have operational requirements, primarily in compliance," the agency said in a statement to CTV News Ottawa.

The Union of Taxation Employees (UTE), which is the arm of the Public Service Alliance of Canada (PSAC) representing CRA workers, reported that 534 of its members received termination notices. These members work in several areas, including the Appeals Branch; Assessment, Benefit, and Service Branch; Commissioner’s Office; Human Resources Branch; and Compliance Programs Branch.

According to a media release from the union, the reasons for these adjustments include:

• The end of pandemic-related funding and workloads
• Expenditure reductions and budget pressures
• Agency Alignment and organizational streamlining
• Changes in workload
• Centralization, harmonization, digital or self-service delivery
• Regional and organizational restructuring

Impact on services and staffing trends

The CRA has stated that it expects "services to Canadians will continue without disruption" and that the changes help align organizational structures with "current and future business needs." The agency noted that these efforts are part of its transformation toward service excellence, revenue generation, and operational efficiency.

However, the Public Service Alliance of Canada has expressed concern regarding the impact on service delivery. PSAC national president Sharon DeSousa said in a statement, "Cutting more jobs at CRA isn't how you improve service — it's how you increase delays and frustrations of people across Canada when they're trying to access services."

Staffing levels at the agency have been declining. As of March 31, 2026, the CRA employed 48,774 people, which is a decrease from 52,499 employees recorded in March 2025. The agency's 2026-27 departmental plan targets $1.2 billion in spending reductions planned over three years.

Context of federal workforce reductions

These cuts occur within a broader federal context. In the Canada Strong Budget 2025, the federal government outlined a plan to reduce the size of the federal public service by 28,000 positions by 2029. This includes 16,000 full-time equivalent positions to be eliminated through the comprehensive expenditure review. Additionally, the Treasury Board of Canada Secretariat says 9,438 federal public servants have been approved for early retirement packages.

Regarding service accessibility, data from the Office of the Auditor General of Canada (OAG) for the 2024-25 fiscal year showed that of the more than 32 million calls received by the CRA, just over 10 million reached an agent. Callers who chose to wait to speak with an agent waited an average of approximately 31 minutes, which was nearly twice as long as the previous year.

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Sources

• ca.finance.yahoo.com: CRA cuts 735 jobs weeks before tax season as phone wait times already hit 31 minutes on average
• money.ca: CRA cuts 735 jobs before tax season
• ctvnews.ca: Public service: CRA issues 735 workforce adjustment notices

This article was drafted with AI assistance and checked against the sources above. Company claims are reported as claims. Cover image is AI-generated.