Federal Workforce Adjustments Begin: A Leadership Test for Public Service Executives
Public service cuts loom, testing leadership in 2026

As the calendar turns to 2026, a period of significant uncertainty and transition is beginning for Canada's federal public service. Many departments and agencies are preparing to issue workforce adjustment notices to employees starting in January, initiating a complex process that will test the mettle of its leaders.

The Dual Challenge for Public Service Leaders

Prime Minister Mark Carney's strategy presents a formidable paradox for senior officials. The plan demands a simultaneous reduction in the size of the public service while accelerating progress on key government priorities. This creates an operational environment where executives and managers must effectively rebuild the aircraft mid-flight, all while flying at unprecedented speeds.

The situation is uniquely complicated for approximately 1,000 executives and an even larger number of managers. These individuals are tasked with guiding their teams through this turbulent period while they themselves are subject to the same workforce adjustment process. They must provide support and stability to staff who are contemplating potential unemployment, even as they face the prospect of their own imminent departure from public service. For many, this period will represent a final, profound demonstration of their professional commitment.

Navigating Uncertainty in a Digital Age

Leading during workforce adjustment requires the same core principles as effective leadership in any circumstance: thoughtfulness, compassion, and the ability to mobilize people under pressure. Sharing information transparently, maintaining authenticity, and keeping communication channels open remain foundational practices.

However, the current context differs markedly from the last major round of cuts under former Prime Minister Stephen Harper. Today's process is unfolding within a social-media-fueled environment, where platforms like Reddit host active public service networks buzzing with real-time speculation and anxiety. The contentious debates over return-to-office mandates have demonstrated how quickly information—and misinformation—can spread in this digital hothouse.

This noise level means that traditional all-staff emails are insufficient. Executives and managers must work harder than ever to establish trusted information spaces with their employees. Uncertainty breeds controversy, and the present moment is characterized by a state of being betwixt and between, with some organizations already starting their adjustment processes and others signaling an imminent start.

The Human Impact of Workforce Adjustment

Workforce adjustment is the formal process through which permanent employees are notified that their positions may be eliminated after a certain date. It can lead to opportunities to compete for remaining jobs or to arrange swaps with colleagues who may wish to leave voluntarily. Understandably, staff facing this prospect often struggle to remain fully engaged, placing an additional burden on leadership to maintain morale and productivity.

The core New Year's resolution for the public service's senior ranks must be to clarify uncertainties wherever possible. In an era of rapid information sharing and high employee anxiety, creating clarity is not just an administrative task—it is an essential act of leadership that will define the public service's ability to function through this transition and beyond.