The Canadian federal government has allocated over $1 billion to Canada Post through a repayable loan to assist the struggling Crown corporation in maintaining financial stability and operational continuity. This $1.01 billion fund will be disbursed as necessary and is termed as a short-term financial bridge. This additional funding is on top of the $1.03 billion previously provided by Ottawa in January 2025.
Public Services and Procurement Canada highlighted the necessity for this financial aid due to Canada Post’s recent financial losses, emphasizing the need for a clear strategy to restore long-term stability. Canada Post had previously indicated the need for a bailout, as the earlier financial support was projected to be depleted before the fiscal year-end in March 2025, necessitating short-term financing for the following year.
The aim of this latest financial assistance from the federal government is to uphold service operations while Canada Post implements reforms to ensure its sustainability in the future. Canada Post confirmed their ongoing financial difficulties and mentioned that they have submitted a transformation plan to the federal government, outlining actionable steps to deliver financially sound services to Canadians.
