CRA Job Cuts in Canada: Impact and Updates

The Canada Revenue Agency (CRA) is undergoing substantial staffing reductions in 2025.

These cuts affect thousands of jobs—both permanent and term positions—and have serious repercussions for public service delivery, employee morale, and taxpayer wait times. 

Below is what is known so far: how many jobs are lost, which areas are most affected, what budget pressures are driving cuts, what CRA is doing to respond, and what this means for Canadians.

How many CRA jobs have been cut?

Since 2024, CRA has eliminated over 3,000 positions, comprising term contracts and permanent roles. 

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The Union of Taxation Employees (UTE) reports that the workforce shrank from 59,155 in 2024 to 52,499 in 2025.

Additional plans include cuts of roughly 280 more employees, with executive and branch reorganization in consideration.

These declines coincide with a directive for federal departments and agencies to cut budgets and control public service size. 

CRA’s share of required savings is significant: the agency must trim $715 million over coming fiscal years.

Which roles and divisions are most affected?

Job cuts are especially concentrated in:

1. Call centres and customer service (many term contracts not renewed).
2. Debt collection, appeals, and internal service branches where workload has declined or can be restructured.
3. Digital transformation and internal support teams, which will be absorbed into other units.
4. Some executive roles and upper management positions, as part of branch reorganization.

Term and contract roles appear to bear the brunt, while permanent employees may face reassignment or workforce adjustments under collective agreement protocols.

What is driving CRA’s job cuts?

Several factors push CRA’s workforce downwards:

1. Sunsetting of special programs: Temporary pandemic-era programs and emergency benefit administrations no longer require as many staff.
2. Federal budget constraints: CRA was instructed to absorb a large share of cuts as part of a broader government cost reduction agenda.
3. Modernization and consolidation: The agency is restructuring internal services and merging digital transformation work into existing branches to reduce overheads.
4. Reduced workload in certain areas: Some audit, appeals, or program delivery tasks have less volume or are being automated.

How is CRA responding with service improvement and mitigation?

Recognizing that cuts have strained taxpayer service, CRA has launched a 100-day Service Improvement Plan (from September to December 2025) to reverse negative service trends.

Key elements of the plan include:

1. Increasing staff in contact centres to reduce calls unanswered and long wait times. Already, the share of calls answered rose from 37 % in late June to 57 % in early September.
2. Expanding digital self-service: extending hours for online chat support, improving My Account portal usability, and using automation to reduce pressure on agents.
3. Backlog reduction: targeted efforts to reduce delay in tax adjustments, appeals, and other operations where service lag has grown.
4. Modernization tools: testing new technology and workflow tools (e.g., scheduling, AI assistance) to make the remaining operations more efficient.

While it is too early to see full results, these steps indicate CRA is trying to stabilize operations amid fewer staff.

What impacts are already visible for Canadians?

The job cuts have translated into measurable negative impacts:

1. Longer wait times: CRA call centres report wait times between 30 minutes and over 3 hours. Only a small fraction of callers reach an agent.
2. Higher complaint volumes: The Taxpayers’ Ombudsperson’s office is receiving record complaint levels, and many of those cite delays or lack of service responsiveness.
3. Backlogs in audits, adjustments, and appeals: Delays in taxpayer requests and notices of objection are rising, especially in more complex cases.
4. Reduced access to support: Some local offices and in-person or branch support services may be cut or consolidated, forcing more reliance on remote or digital channels.

What do unions and employees say?

Unions, particularly the UTE and the PSAC, are sounding alarms:

1. They argue the cuts are excessive, threatening service quality, and overburdening remaining staff.
2. They demand a moratorium on further cuts, citing that remaining tasks are already falling short of public demand.
3. There’s concern regarding workforce adjustment protections. CRA’s collective agreements include a Workforce Adjustment Appendix (WFAA) that gives some rights and protections to employees declared redundant.
4. Unions emphasize that CRA should explore alternatives to layoffs—such as reducing contracting out, better resource allocation, or delaying cuts.

What to watch going forward

To understand where this situation is heading, keep an eye on:

1. CRA’s published performance metrics and service statistics, especially from the 100-day plan.
2. Further announcements on staffing or budget changes tied to the $715 million cuts CRA must absorb.
3. Updates on the moratorium calls by unions and whether the government responds.
4. Which branches or geographic regions see further reductions or consolidation.
5. The balance between investment in automation/digital tools and the need for human staff in complex tax, appeals, and benefit matters.
6. Whether CRA begins restoring or hiring staff in certain high-impact areas once budget cycles permit.