Canada Post has announced a record annual loss of $1.57 billion for 2025 as the country’s postal system continues to deteriorate.
The Crown corporation said the loss in 2025 grew by $728 million, or 87%, from the previous year. In a news release, Canada Post said it was the “largest loss before tax on record.”
“Canada Post’s financial situation deteriorated significantly in 2025,” added the company. Since 2018, Canada’s postal system has lost more than $6 billion.
The mounting losses come as delivery of letter mail, bills, and statements evaporates, and as Canada Post struggles to compete on parcel deliveries against rivals such as FedEx (FDX).
Canada Post is undertaking a multiyear transition to become a leaner organization. This includes ending door-to-door home deliveries nationwide and shrinking its unionized workforce.
Ottawa has estimated that Canada Post could achieve nearly $400 million in annual savings if the planned changes are successfully implemented.
However, Canada Post has attempted several transformations in recent years, all of which have failed. These have included a poorly received attempt at banking in underserved communities.
As a Crown corporation, Canada Post has a mandate to be self-sustaining and for the postal system to be funded via postage rates.
That said, any financial shortfalls at Canada Post are ultimately borne by the federal government through Canadian taxpayer dollars.
The Canadian Union of Postal Workers (CUPW), which represents 50,000 unionized postal workers, is calling for Canada Post to be transformed into a federal government department.
As a government department, Canada Post would be funded 100% with taxpayer dollars, be given an annual budget, and there would be no expectation of profit or self-sufficiency.
