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Canada Post Records Worst-Ever Loss of $1.57 Billion — And Your Mail Delivery Is Changing Because of It


MoneySavings.ca  ·  Economy & Policy

Wednesday April 22, 2026  ·  Daily Update

Canada Post has reported a staggering $1.57 billion loss before tax in 2025 — its worst financial result ever — and the Crown corporation is now warning that without a dramatic transformation, it cannot survive without continued taxpayer bailouts. The announcement, made Monday, comes as millions of Canadians are about to see significant changes to how — and where — they receive their mail.

2025 Loss (before tax)
$1.57B
Worst on record
Total losses since 2018
$6.1B
8 straight years of losses
Parcel volumes fell
32.6%
79M fewer parcels vs. 2024
Federal loans to stay afloat
$2B
Taxpayer-funded bailout loans

How did it get this bad?

Canada Post has lost money every year since 2018, accumulating more than $6.1 billion in total losses. The 2025 result was the worst yet — the annual loss widened by $728 million, or 86.7%, compared to the $841 million loss reported in 2024. Revenue fell $315 million, or 4.7%, as parcel volumes collapsed by 79 million pieces — a 32.6% drop — largely blamed on the prolonged labour disputes that saw postal workers strike twice, right before the holiday seasons.

The strikes cost the corporation dearly in customer trust. Parcel revenues alone fell by $850 million compared to the prior year during the strike actions. Canada Post spokesperson Jon Hamilton was blunt about the lasting damage: major retail clients are refusing to come back until there is certainty. "We're consistently down again because our large retailers... are saying 'We'll talk to you when you have certainty. Until then, we're going to stay with the competition.'"

One bright spot: Canada Post's subsidiary Purolator, which operates independently, reported a $256 million profit in 2025 — partially offsetting the parent company's losses. Purolator's success shows that parcel delivery can be profitable in Canada, but also underscores how far Canada Post itself has fallen behind the competition.

What's changing for your mail delivery

The financial crisis is driving sweeping changes to postal service across Canada. Here is what has already been announced:

Change Details
Door-to-door delivery ending 4 million addresses to switch to community mailboxes over 5 years. First 136,000 addresses in 13 communities — including Ottawa and Winnipeg — begin transition in late 2026.
Post office closures Canada Post is reviewing its retail network for closures of urban and suburban post offices it considers "over-served." Rural communities are promised protection for now.
Workforce reductions A 30% reduction in workforce at depots affected by the mailbox conversion. The plan is to achieve this mostly through attrition and retirements rather than layoffs.
Expected annual savings The community mailbox conversion alone is projected to save $400 million per year once fully implemented.

Workers push back — and a contract vote is underway

Canada Post workers began voting Monday on a new five-year collective agreement — the same day the record loss was announced. The timing is significant: the union leader has urged members to reject the deal, calling the corporation's restructuring plans "an assault on workers."

The Canadian Union of Postal Workers (CUPW) argues that cutting services and eliminating door-to-door delivery will not fix Canada Post's competitive problems. "You cannot cut your way to growth," the union said in a statement. The outcome of the contract vote will be a key signal of whether Canada Post faces further labour unrest — the same instability that accelerated its financial collapse in 2025.

What this means for Canadians

For everyday Canadians, the changes are coming whether we like them or not. If you live in one of the four million homes that still receives door-to-door delivery, you will be switched to a community mailbox within the next five years — with the first wave of 136,000 addresses confirmed for late 2026 and early 2027. Check Canada Post's website to see if your postal code is in the first batch.

For online shoppers, the strikes of 2025 were a reminder of how fragile Canada Post's parcel service has become. Many Canadians have already shifted to Amazon, FedEx, and UPS for reliable delivery — and Canada Post's own data confirms those customers are not coming back quickly. If you rely on Canada Post for business shipping, building in backup courier options is increasingly worth considering.

The bottom line: Canada Post is a Crown corporation required by law to be self-sustaining — but it has not been since 2018 and now depends on $2 billion in federal loans to stay open. Taxpayers are effectively subsidizing a postal service that is shrinking its way through a crisis. The transformation plan may save hundreds of millions annually, but it will take years — and less convenient mail service for millions of Canadians in the meantime.

Sources: CBC News, Globe and Mail, Global News, BNN Bloomberg, Canadian Press. This article is for informational purposes only. © 2026 MoneySavings.ca

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