Service Canada slashes hundreds of jobs as demand for passports declines

Fewer Canadians are expected to apply for passports this year, prompting Service Canada to cut 800 jobs nationwide.

According to a projection by Immigration, Refugees and Citizenship Canada (IRCC), passport volumes in 2025 to 2026 will be significantly lower than those in 2024 to 2025.

In an email to Daily Hive, a representative for Employment and Social Development Canada (ESDC) stated, "As a result of this projected reduction in passport volumes, Service Canada will be adjusting its passport workforce effective June 2025 to align with approved funding levels."

The representative said that Service Canada regularly ensures that its workforce levels "align with forecasted volumes." They also stated that as a federal department, ESDC must ensure that revenues are balanced with costs, including employee salaries.

As a result, the reduced passport application forecast will affect approximately 800 term employees. Layoffs will occur in Service Canada locations in every province and territory.

When asked how the mass layoffs would affect processing times, ESDC assured that the decision to reduce the workforce wouldn't disrupt operations.

"Since April 1, 2025, the Passport Program has consistently surpassed its service standards," they stated.

"Specifically, 99 per cent of complete passport applications are currently processed within service standards, while the performance target for applications is for 90 per cent of complete applications to be processed within the service standards annually. Service Canada has measures in place to monitor performance against service standards, respond to unforeseen surges, and adapt to changing client needs."

According to ESDC, impacted employees are now being notified and are "being provided direct support."

"This decision was necessary and not taken lightly," they stated.

Canadians are increasingly choosing to travel domestically. According to a March report by OAG, a global travel data company that provides data solutions and analytical tools, the number of Canadians travelling to the U.S. during the busy summer months dropped by 70 per cent.