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The case against cutting costs at Canada Post

6 0
09.01.2026

Canada Post is already efficient compared with postal services in other countries. More cuts will only lead to managed decline

Canada Post’s financial crisis is often blamed on a costly and outdated pre-digital delivery model. According to this analysis, declining letter mail volumes have made the public postal service wasteful and inefficient, and aggressive cost-cutting is the only responsible solution.

But a look at the numbers tells a different story.

When Canada Post is compared with postal services in other high-income countries, it emerges not as an expensive outlier but as one of the most cost-effective systems. And when we look at what has happened elsewhere, we find that cutting spending on postal services is not a path to financial sustainability. Instead, it is a recipe for long-term decline.

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