Canada Post, facing significant financial challenges, will receive up to $1.034 billion in repayable funding from the federal government to help it continue operating. The corporation reported a loss of $315 million due to declining parcel revenue and volumes. The funding will provide a temporary financial bridge while Canada Post and the government work on a plan to ensure the long-term viability of the service.
says the federal government is providing it with a lifeline to help the Crown corporation continue operating as it “deals with significant financial challenges .”
The corporation said Friday that Ottawa plans to make repayable funding of up to $1.034 billion available for its 2025-26 fiscal year., with the national postal service reporting a loss before tax of $315 million amid a decline in parcel revenue and volumes. That quarter’s revenue from parcels had dipped 5.8 per cent and volumes declined by six million pieces, or 9.6 per cent compared to the previous year.According to the news release announcing the funding, the corporation said it would help operations continue but would not help in its structural issues.
The financing also comes a month after a strike by Canada Post workers came to an end when the Canada Industrial Relations Board ordered workers back on the job‘Canada is not for sale’ hat offers tough lesson in domestic manufacturing Since 2018, the corporation has recorded annual losses that it says are fuelled by the changes in postal and parcel delivery sectors, labour costs and “legacy regulatory measures” that it claims prevents it from evolving and competing with other companies.It added its 2023 annual report also showed that without the financing measure announced Friday, the company would completely deplete its cash reserves by the second quarter of 2025.
Canada Post Government Funding Financial Challenges Parcel Delivery Labor Costs
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