The move follows prime minister Mark Carney’s call for a 15% budget cut across federal agencies
The Bank of Canada confirmed it would eliminate approximately 225 positions, or nearly 10% of its staff, by June 2026. This is part of a government-wide push to rein in public spending and prepare for economic uncertainty driven by United States trade tensions.
The move follows Prime Minister Mark Carney’s call for a 15% budget cut across federal agencies and comes as the government aims to save C$60 billion over five years, largely through attrition and a reduction of about 40,000 federal jobs.
A spokesperson for the Bank of Canada said the cuts would affect “all departments,” adding, “After starting with vacancies, attrition and voluntary retirements, we expect to reduce staffing levels further by about 225 positions by June of next year.”
The spokesperson emphasized, “We will make sure that the bank remains able to deliver on its mandate for Canadians.”
The central bank, which sets monetary policy and monitors financial conditions, has seen its workforce swell since the pandemic. At the end of 2023, it employed 2,350 people, up from around 1,800 in 2019.
The cuts are part of a broader fiscal review unveiled in Budget 2025 by Finance minister François-Philippe Champagne, which also includes shrinking the public service and trimming or terminating several programs.
Prime Minister Mark Carney’s first budget commits $280 billion to rebuild growth through infrastructure, competitiveness, and housing. Finance Minister François-Philippe Champagne called it a generational plan to “build Canada strong.”https://t.co/mb7MXPgXyX
— Canadian Mortgage Professional Magazine (@CMPmagazine) November 5, 2025
Paul Badertscher, a Bank of Canada spokesperson, said, “Reductions are happening in all departments.” He added, “We are committed to achieving a 15 per cent budget reduction over the 2026-28 period.”
The job cuts come as Canada faces mounting economic headwinds, including a growing budget deficit—projected to hit C$78.3 billion, up from C$42.2 billion last December—and ongoing trade friction with the US.
President Donald Trump’s administration has imposed steep tariffs on Canadian exports, prompting Ottawa to announce C$141 billion in stimulus spending to offset the impact.
The Bank of Canada recently lowered its policy rate from 2.50% to 2.25%, warning of “structural” damage to the economy caused by US trade actions. The central bank has also been tasked with new regulatory responsibilities, including oversight of the forthcoming Consumer-Driven Banking Act, which aims to address the rapidly evolving fintech sector.
Meanwhile, the Large Urban Centre Alliance, a coalition representing major cities and co-facilitated by the Building Industry and Land Development Association (BILD), previously warned that Budget 2025 fails to tackle the sector’s deepening crisis and could put 100,000 jobs at risk.
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