PSPC Layoffs 2026: What to Do If You Received an Affected Letter

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.

What Happened at PSPC

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:

• Health Canada: Over 1,000 employees notified (see WFA guide)
• Statistics Canada: Over 1,900 CAPE members received notices
• Shared Services Canada: Over 1,200 employees affected
• Innovation, Science and Economic Development: 1,100 employees notified
• Natural Resources Canada: Over 400 notices issued

For broader context on the federal public service reductions, see the Ottawa federal job cuts overview.

What an Affected Letter Actually Means

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:

• A 12-month paid surplus priority entitlement to find another federal position
• A transition support measure (a lump-sum payment based on years of service)
• An education allowance for approved retraining programs

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.

Your Options During the WFA Process

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:

• Surplus priority entitlement: 12 months of paid time to find another federal position, with priority consideration in competitions
• Transition support measure: A cash payment calculated based on your years of service, typically equivalent to several weeks or months of salary
• Education allowance: Funding for approved training or education programs that support your career transition

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.

How This Affects Your Career Options

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:

• Provincial and municipal governments
• Consulting firms with federal contracts
• Private sector procurement and supply chain organizations
• Crown corporations and agencies
• Non-governmental organizations working with government

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."

How to Update Your Resume After a WFA Notice

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:

• Dollar value of contracts or projects managed
• Number of procurements processed or contracts awarded
• Team size supervised or stakeholders coordinated
• Process improvements implemented and their impact

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.

For guidance on translating federal experience into effective resumes, see the Ottawa federal job cuts resume examples.

What to Do This Week

If you recently received an affected letter from PSPC, here are practical steps to take now.

Immediate actions (Days 1-7):

• Read your letter carefully. Confirm what status you have been assigned or whether you are awaiting further classification
• Contact your union representative. PSAC, PIPSC, or CAPE can explain your specific options, timelines, and collective agreement provisions
• Gather documentation. Collect performance reviews, job descriptions, project records, letters of offer, and any awards or recognition. You may need these for priority applications or to demonstrate your qualifications
• Review the official WFA guidance. The Government of Canada workforce adjustment page explains the process and timelines

Resume and career preparation (Days 7-30):

• Update your resume. Don't wait for clarity on your final status. Having a current, well-structured resume gives you more options regardless of how your situation unfolds
• Set up GC Jobs alerts. If you receive surplus priority, you'll want to apply quickly when matching positions appear. Having alerts configured saves time
• Audit your competencies. Review your performance agreements and identify the competencies you can demonstrate. Federal competitions often require specific competency examples
• Start networking. Reach out to colleagues in other departments, former PSPC employees who have transitioned, and contacts in organizations where your skills might be valued

If exploring external opportunities:

• Update your LinkedIn profile with external-friendly language
• Research organizations that regularly hire from the federal government
• Connect with recruiters who specialize in public sector transitions
• Consider whether your skills align with provincial government, consulting, or private sector procurement roles

If you're still processing the news, you may find the broader Ottawa federal job cuts guide helpful for understanding the context and timeline.

Where PSPC Employees Commonly Go Next

PSPC's diverse functions mean employees have varied career paths depending on their specialization.

Procurement and contracting professionals often move to:

• Other federal departments with procurement needs
• Provincial and municipal governments
• Crown corporations
• Consulting firms supporting government procurement
• Private sector supply chain and vendor management roles

IT and digital services staff find opportunities in:

• Shared Services Canada and other departments
• Technology consulting firms
• Private sector IT organizations
• Fintech and GovTech companies

Real property specialists transition to:

• Public Works roles in other jurisdictions
• Commercial real estate organizations
• Property management firms
• Infrastructure consulting

Project managers and policy analysts have broad options across:

• Federal, provincial, and municipal governments
• Non-profit organizations
• Consulting firms
• Private sector organizations with complex project needs

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.

Support Resources

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.

• PSAC Workforce Adjustment Guide
• PIPSC WFA FAQs for Indeterminate Employees
• CAPE Workforce Adjustment FAQs

Government resources:

• Employee Assistance Program (EAP): Confidential counseling and support services
• Federal Public Service Health Care Plan: Information about benefits continuation
• Public Service Pension Centre: Guidance on pension implications

Career development:

• GC Jobs: Federal job postings where priority candidates are considered first
• Job Bank: Federal job board including private sector opportunities

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.

A Simple Next Step (When You're Ready)

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.

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