More than 1,000 Public Services and Procurement Canada (PSPC) employees have received workforce adjustment (WFA) notices as part of federal government plans to reduce the public service by approximately 40,000 positions by 2028‑29.
This guide explains what the PSPC cuts mean, what your options are under the workforce adjustment framework, and how to position yourself for redeployment within the federal government or opportunities outside the public service.
If you work at Public Services and Procurement Canada and recently received an affected letter, you are one of over a thousand employees navigating the same uncertainty. PSPC is implementing significant workforce reductions as part of the federal government's broader expenditure review, and the process has already begun.
An affected letter does not mean you have been laid off. It signals that your position may be impacted by organizational changes. The formal workforce adjustment process provides structured options and time to plan your next steps.
Public Services and Procurement Canada is planning to eliminate approximately 1,090 positions as part of the government-wide expenditure review announced in Budget 2025. According to news reports, the department has already cut around 329 roles since April 1, 2025, including approximately 29 executive positions.
To implement the remaining reductions, PSPC has issued about 1,153 affected letters to employees whose positions may be impacted. The department expects to save hundreds of millions of dollars over several fiscal years through these workforce changes.
PSPC's deputy minister, Arianne Reza, communicated with staff about the cuts, emphasizing that the department remains committed to supporting employees through the transition and directing them to internal resources.
PSPC joins a growing list of federal departments issuing workforce adjustment notices as part of the government's plan to reduce the public service from a peak of approximately 368,000 positions in 2023-24 to around 330,000 by 2028-29. Other departments with significant WFA activity include:
For broader context on the federal public service reductions, see the Ottawa federal job cuts overview.
Receiving an affected letter from PSPC does not mean you have been terminated. It means your position has been identified as potentially impacted by organizational changes. The formal workforce adjustment process, outlined in collective agreements and the NJC Work Force Adjustment Directive, provides structured options and defined timelines.
Important
An affected letter is the beginning of a process, not an endpoint. Depending on your situation, you may be redeployed, offered alternate positions, or given time and support to find a new role inside or outside the federal government.
The workforce adjustment process typically results in one of two status designations:
Surplus with a guarantee of a reasonable job offer: The employer commits to finding you an alternative position within the core public administration, normally at an equivalent level. You retain your salary and benefits during this period.
Opting status: You must choose from a defined set of options within 120 days. These typically include:
Not everyone who receives an affected letter will ultimately lose their position. Some employees will be redeployed to other roles within PSPC or other departments. Others may use alternation agreements, where they exchange positions with employees who wish to leave voluntarily.
The process unfolds over months, not days. Use this time strategically to update your resume, explore internal opportunities, and understand your options before making decisions.
Understanding your options helps you make informed decisions. The specific choices available depend on your employment status, classification, and collective agreement.
If you receive surplus priority status:
You gain preferential access to federal job competitions across the core public administration. When positions become available at your substantive level, you must be considered before external candidates. This priority typically lasts 12 months.
The priority system works best when you actively search and apply. Monitor GC Jobs regularly, set up alerts for positions matching your classification, and apply promptly to postings that align with your qualifications.
If you are declared opting:
You have 120 days to select from the options in your collective agreement. Take time to understand each choice before deciding:
Each option has trade-offs. The priority entitlement preserves your public service career but requires active job searching. The transition payment provides immediate financial support but ends your employment relationship. The education allowance invests in your future skills but requires commitment to a training program.
Alternation agreements:
In some cases, you may be able to exchange positions with an employee in a non-affected role who wishes to leave the public service. This can preserve your employment while allowing another employee to take the surplus designation and access transition benefits.
For detailed guidance on your specific situation, consult your union representative (PSAC, PIPSC, or CAPE, depending on your classification) and review the Government of Canada workforce adjustment information.
Whether you pursue redeployment within the federal government or explore opportunities outside the public service, the current environment creates both competition and openings.
Inside government:
With thousands of employees across multiple departments entering the priority system simultaneously, competition for remaining positions is significant. Your resume needs to clearly communicate your classification, competencies, and experience in language that matches federal job posters.
PSPC employees have transferable skills valued across the government. Procurement expertise, contract management, real property knowledge, project management, and financial oversight are needed in multiple departments.
Outside government:
Your PSPC experience translates to roles in provincial governments, Crown corporations, consulting firms, and private sector organizations that work with government. Procurement professionals, IT project managers, real property specialists, and policy analysts from PSPC are sought after by:
The key challenge is translating federal terminology and processes into language that external employers understand. "Procured goods and services under PSPC standing offers" becomes "managed vendor relationships and procurement contracts worth $X million."
If you received a PSPC affected letter, your resume likely needs attention. Federal roles use specific language, classifications, and competency frameworks that don't automatically translate to either external employers or other federal competitions.
For federal competitions:
Your resume should reflect the language used in federal job posters. Include your classification history (AS-05, PG-04, CS-03, etc.), clearly articulate your competencies, and demonstrate how your experience meets the essential qualifications and asset qualifications in postings.
Use the same terminology that appears in job posters. If a posting asks for "experience in procurement processes," your resume should explicitly describe your procurement experience using similar phrasing.
For external opportunities:
Translate internal titles, acronyms, and program names into plain language. External employers won't recognize "managed TBIPS task authorizations" but will understand "oversaw IT service contracts and vendor performance."
Quantify your achievements wherever possible:
Addressing the WFA situation:
If asked about your departure, explain briefly and neutrally: "My position was affected by government-wide workforce reductions in 2026." Mass layoffs resulting from organizational restructuring are understood by employers and carry no stigma.
Avoid over-explaining or sounding defensive. Focus on what you accomplished in your role and what you bring to a new position.
Prepare two resume versions: one optimized for federal competitions (with classifications, competencies, and GC language) and one for external opportunities (focused on transferable skills and quantified accomplishments).
For guidance on translating federal experience into effective resumes, see the Ottawa federal job cuts resume examples.
If you recently received an affected letter from PSPC, here are practical steps to take now.
Immediate actions (Days 1-7):
Resume and career preparation (Days 7-30):
If exploring external opportunities:
If you're still processing the news, you may find the broader Ottawa federal job cuts guide helpful for understanding the context and timeline.
PSPC's diverse functions mean employees have varied career paths depending on their specialization.
Procurement and contracting professionals often move to:
IT and digital services staff find opportunities in:
Real property specialists transition to:
Project managers and policy analysts have broad options across:
The key is identifying how your specific PSPC experience translates to roles in your target sector. For most employees, the skills developed in federal government work are transferable; the challenge is communicating them effectively.
Beyond immediate career planning, workforce transitions can affect multiple aspects of life.
Union resources:
Your union (PSAC, PIPSC, or CAPE) provides guidance on WFA processes, collective agreement rights, and member support services. Contact your local representative early in the process.
Government resources:
Career development:
Financial planning:
If you're considering the transition support measure or anticipating a gap in employment, consulting a financial advisor can help you understand the implications for your budget, benefits, and long-term financial plan.
If you want to see how your current resume performs against applicant tracking systems and federal job requirements, you can upload it to Yotru for a review. The tool highlights practical improvements for both internal redeployment and external applications.
Many federal employees find it helpful to review their resume early in the WFA process, before any application deadlines apply. There's no pressure to apply anywhere immediately. This is about understanding where you stand and identifying gaps before they become urgent.
Our AI-powered scoring system helps organizations assess and standardize resume quality at scale. ATS-compliant templates support consistent formatting, keyword alignment, and interview readiness across cohorts.
Team Yotru
Employability Systems & Applied Research
Team Yotru
Employability Systems & Applied Research
We build career tools informed by years working in workforce development, employability programs, and education technology. We work with training providers and workforce organizations to create practical tools for employment and retraining programs—combining labor market insights with real-world application to support effective career development. Follow us on LinkedIn.
Common questions about workforce adjustment notices and job cuts in Ottawa's public service
An affected letter means your position has been identified as potentially impacted by workforce reductions. It does not mean you have been terminated. You will receive further information about your specific status (surplus with guarantee, opting, etc.) and the options available to you under the workforce adjustment process.
This article is written for PSPC employees who have received affected letters or workforce adjustment notices as part of the 2026 federal expenditure reductions. It is intended for employees across classifications, including procurement, IT, real property, policy, and administrative functions, who are navigating uncertainty about their positions and considering options within or outside the federal government.
Yotru publishes workforce and employability content grounded in verifiable policy, institutional processes, and practical hiring realities. This article avoids speculation, fear-based framing, or prescriptive career outcomes. It distinguishes clearly between confirmed policy, common practice, and informed guidance. References are limited to credible government, union, and established media sources.
The analysis is based on a review of official Government of Canada workforce adjustment directives, collective agreement provisions, news coverage of PSPC workforce reductions, and publicly available union communications. The career and resume guidance reflects observed federal hiring workflows, priority entitlement mechanics, and common transition patterns of public servants moving to other departments or external roles.
This article is provided for general informational purposes only and does not constitute legal, union, or career advice. Workforce adjustment outcomes vary by classification, collective agreement, and individual circumstances. Readers should consult official Treasury Board guidance, their union representatives, and departmental HR advisors for advice specific to their situation.
Resume Building and Optimization
Market and Workforce Guidance
References
If you are working on employability programs, hiring strategy, career education, or workforce outcomes and want practical guidance, you are in the right place.
Yotru supports individuals and organizations navigating real hiring systems. That includes resumes and ATS screening, career readiness, program design, evidence collection, and alignment with employer expectations. We work across education, training, public sector, and industry to turn guidance into outcomes that actually hold up in practice.
Part of Yotru's commitment to helping professionals succeed in real hiring systems through evidence-based guidance.
More insights from our research team
Whirlpool laid off 341 employees in February 2026 citing a multi-year modernization plan. Practical guidance on severance, rights, and your next steps.
This analysis compares five Executive Assistant resumes across healthcare, tech, corporate, and remote environments. It shows how positioning, tools, and measurable impact influence hiring decisions in 2026.
Senior SDR resume review breaking down SaaS outbound experience, pipeline metrics, and practical tips job seekers can copy to stand out in tech sales.
Windsor's unemployment rate reached 8.1% in January 2026, up from 7.6% in December, ranking the city tied for sixth-highest among major Canadian cities as manufacturing job losses continue to pressure the local economy.
