Canada Post reports record losses of $1.57 billion in 2025 – National | Globalnews.ca

Canada Post on Monday announced a staggering $1.57 billion pre-tax loss last year, a loss the company attributes to workforce instability and barriers to modernization.

The company said in a statement accompanying its annual report that the financial loss was nearly double the $841 million pre-tax loss the national postal operator lost the previous year.

“The seriousness of the company’s financial situation highlights the urgent need to transform the country and meet its modern needs,” it said in a statement.

Revenue fell by nearly 5 per cent ($315 million), which Canada Post said was due to a sharp 32.6 per cent drop in parcel volume last year.

During last year’s labor dispute, many customers switched to private carriers to deliver their parcels. In the labor dispute, Canada Post employees launched several labor movements seeking new contract negotiations, eventually culminating in a nationwide strike.

The two sides finally reached a tentative agreement late last year.

Members of the Canadian Postal Workers Union began voting Monday on whether to ratify the new contract, a process expected to last more than a month. The union called on its members to approve the agreement.

The company announced Monday that its parcel revenue declined by $850 million year-over-year during the strike action, but the loss was partially offset by a $256 million profit reported by Purolator, a subsidiary operated separately from Canada Post.

“Given the impact on customers, the volume of lost parcels will be difficult to replace, highlighting the need to modernize Canada Post’s services in a competitive market,” the Crown corporation said.

Earlier this month, Canada Post announced a five-year plan to convert the four million addresses across the country that currently receive door-to-door delivery into community mailbox services.

The move is part of a sweeping transformation plan announced by the federal government last fall that includes relaxing standards for letter delivery and closing some post offices in areas that were once considered rural but have since become suburban or urbanized.

Both the government and the company have pledged to protect delivery services in rural, remote and indigenous communities.

Canada Post also laid off members of its executive team last year in response to government requirements under its transformation plan. The company said it plans to reduce its workforce primarily through layoffs and retirements.

The government says the transformation plan adopted by Canada Post will save the company hundreds of millions of dollars a year and move it away from dependence on federal funding.

Ottawa loaned Canada an additional $1 billion earlier this year after Canada Post exhausted its previous $1.03 billion loan sooner than expected.

Canada Post announced Monday that it has reached an agreement with the government that it is “critical” that the company transform and end its reliance on taxpayer-funded loans.

In November, the company announced that the ongoing labor dispute had already cost it more than $1 billion in 2025.

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