Canada Post allowed to shut down rural locations, end door-to-door delivery
Major changes are coming to Canada Post, as the federal government will allow the Crown corporation to shut down some rural locations and end its door-to-door delivery service.
“This is a pivotal moment, not just for the corporation, but for Canadians who rely on it every single day,” said Minister of Government Transformation, Public Works, and Procurement Joël Lightbound during a press conference on Sept. 25. “Today’s announcement is about making sure Canada Post can meet this moment and continue to serve Canadians for generations to come.”
At present, three-quarters of Canadians already use community, apartment, or rural mailboxes, while only one-quarter still receive door-to-door service. Lightbound explained that converting the remaining one quarter to community mailboxes will generate close to $400 million in annual savings.
Iryna Tolmachova/Shutterstock
Additionally, the government will lift an outdated moratorium on rural post offices, imposed in 1994, that covers nearly 4,000 locations. As previously rural locations have grown into suburbs or rural areas, Canada Post will be permitted to close many of its locations.
Lightbound stated that Canada Post will be able to adjust its delivery standards, allowing non-urgent mail to travel by ground instead of air, thereby saving the corporation approximately $20 million per year.
The Crown corporation has long needed a significant overhaul.
Since 2018, it has accumulated over $5 billion in losses. In 2024, it lost over $1 billion, and is on track to lose almost $1.5 billion in 2025. To help keep Canada Post operational, the government provided a $1 billion injection early this year; however, the corporation’s second-quarter results were its worst in history, with a loss of $407 million. The corporation incurs $10 million in losses every day.
Lightbound attributed these issues to a variety of factors, such as government-imposed restrictions and a stalled relationship between labour unions and management. He also explained that while Canada Post delivered 5.5 billion letters annually 20 years ago, that number has now dropped to two billion.
Lester Balajadia/Shutterstock
Although letter mail has declined, Canadians have been sending and receiving more packages, often choosing faster and cheaper private couriers. Lightbound noted that Canada Post’s share of parcel deliveries dropped from 62 per cent in 2019 to less than 24 per cent today and continues to decline.
“I’m asking Canada Post to take immediate steps to address its financial challenges,” he said. “That means finding efficiencies, reducing costs, reducing overhead, and I want to be clear, that also means reviewing and lightening its management structure.”
He added that for 158 years, the corporation has connected Canadians in small towns and big cities, providing a lifeline to hundreds of Northern Indigenous and rural communities.
“Canada Post is an institution worth saving, and because at this junction in its history, it’s an institution that needs saving,” he said.