The Public Health Agency of Canada (PHAC) plans to reduce its workforce by approximately 10 percent, which translates to about 320 job cuts. This decision is part of the agency's efforts to adjust following the COVID-19 pandemic. An agency spokesperson stated, "As part of PHAC's post-pandemic recalibration and ongoing efforts to adjust to new salary allocations, the agency must focus resources on government-funded priorities. This means re-prioritizing and streamlining some programs, and in some cases discontinuing work."

Letters notifying affected employees are expected to be sent out next week. Currently, PHAC employs just over 3,000 workers, a significant increase from the pre-pandemic workforce of about 2,300. The agency's staffing peaked at over 4,200 employees in 2022.

These job cuts follow earlier reductions made this year. The spokesperson emphasized that "no decisions are being made lightly" and reiterated that PHAC aims to move forward with a renewed focus on sustainability and public health impact.

The agency played a crucial role in federal messaging and coordination during the pandemic. The recent job cuts are not directly linked to Prime Minister Mark Carney's plans for public sector spending reductions ahead of the upcoming fall budget.

Earlier this summer, Carney requested that federal ministers develop "ambitious savings proposals" for their respective departments. His cabinet is currently meeting in the Greater Toronto Area as Parliament prepares to reconvene later this month.

The federal budget, typically presented in the spring, was postponed following the recent election and is now expected to be unveiled in October. During the election campaign, Carney committed to balancing the operating budget over the next three years while also increasing defense spending and investing in major projects. He described the upcoming budget as one of "austerity and investment at the same time," emphasizing the need for fiscal discipline.