In a historic and controversial move, the Canadian government has ordered Canada Post to end door-to-door mail delivery, close select rural post offices, and overhaul its operations amid a deepening financial crisis. The announcement, made on September 25, 2025, triggered an immediate nationwide strike by the Canadian Union of Postal Workers (CUPW), halting mail services across the country .
Why Is Canada Post in Crisis?
Canada Post has been hemorrhaging money for years. Since 2018, the Crown corporation has accumulated over $5 billion in operational losses . The decline in letter mail—down from 5.5 billion pieces two decades ago to just 2 billion today—has devastated its core business model .
Although parcel delivery was once seen as a lifeline, Canada Post’s market share has plummeted from 62% in 2019 to under 24% in 2025, as private competitors leverage nonunionized gig workers to undercut prices .
Key Financial Losses (2018–2025)
| Year | Loss Before Tax (CAD) | Notes |
|---|---|---|
| 2018–2024 | ~$3.8–4.2B | Cumulative operational losses |
| 2024 | Over $1B | Worst annual loss to date |
| 2025 (YTD) | On track for ~$1.5B | Includes $407M loss in Q2 alone |
What’s Changing for Canadians?
The government’s restructuring plan includes several major shifts:
- End of door-to-door delivery for the remaining 25% of Canadian households (~4 million addresses)
- Lifting the 1994 moratorium on rural post office closures
- Switching from air to ground transport for certain mail to cut costs
- Potential layoffs among Canada Post’s 68,000 employees
While most Canadians already use community mailboxes, the formal end of home delivery marks the close of a decades-old service tradition.
Public and Union Response
The CUPW called the government’s move an “attack on our postal service and workers” and launched an immediate national strike . This is the second major work stoppage in less than a year, following a December 2024 strike and ongoing contract disputes .
Public opinion, however, is shifting. A June 2025 Angus Reid Institute poll of over 4,000 adults found that while Canadians still value universal mail service, a growing majority supports operational changes:
- 65% endorse reducing or eliminating door-to-door delivery
- 59% oppose privatizing Canada Post
- Many support a $20-per-person annual subsidy to maintain service
💡 Did You Know? Canada Post delivered mail to 15.7 million addresses in 2025—but only 4 million still received it at their doorstep .
Historical Context: The 1994 Rural Moratorium
In 1994, the federal government imposed a ban on closing rural post offices to protect essential services in remote communities . Over 3,900 offices were protected under this policy . The 2025 decision to lift this ban signals a dramatic policy reversal, with officials citing financial sustainability and housing development opportunities .
What’s Next?
No firm end date has been set for door-to-door delivery, but changes will be rolled out gradually. Meanwhile, labor negotiations remain stalled, and mail disruptions are expected to continue.
For more on how postal reforms affect local economies, see our deep dive on [INTERNAL_LINK:rural-canada-postal-impact].
Experts warn that without structural reform, Canada Post could face insolvency. “The data was screaming at us that Canada Post was desperate to be reorganized,” said Ian Lee, a business professor at Carleton University .
