Canada Post is “effectively insolvent,” according to the federal government.
On Thursday, they announced a major transformation plan to keep the 150-year-old institution alive.
Canada Post has lost over $5 billion since 2018. In 2024 alone, it lost $1 billion, and 2025 is expected to see losses of $1.5 billion.
According the to Canadian government, the company is currently losing $10 million every day.
Once seen as a leader in mail and parcel delivery, Canada Post’s business model has failed.
The number of letter mail deliveries has dropped from 5.5 billion letters a year two decades ago to only 2 billion now. At the same time, its share of Canada’s parcel market has dropped from 62% in 2019 to below 24% today.
To save money, Ottawa is lifting its long-standing ban on changing door-to-door delivery to community mailboxes. About 4 million homes that still receive door-to-door service will be switched, saving an estimated $400 million each year.
The government will also end the freeze on 4,000 rural post offices, which was first imposed in 1994. This allows for possible closures and consolidations.
Other changes include slowing down the delivery of non-urgent letter mail. This mail will now move by ground instead of air, saving an additional $20 million annually.
Public Services Minister Joël Lightbound said bailouts are no longer sustainable.
“Canada Post is a vital national institution worth preserving,” he said, “but transformation is required to ensure its survival.”
