1、 itif.org Reforming Canada Post for a Lower-Volume Era LAWRENCE ZHANG|APRIL 2026 Canada Posts cost structure no longer scales in a low-volume world.Labour flexibility,automation,work sharing,retail consolidation,and parcel growth are necessary to reduce the cost of reaching every address while prese
2、rving universal service.KEY TAKEAWAYS Canada Post recorded losses of C$748 million in 2023 and C$841 million in 2024,bringing cumulative losses from 2018 to 2024 to nearly C$5 billion.The problem is structural:mail volumes have permanently declined,while delivery obligations and labour costs have ri
3、sen.Higher stamp prices and modest service cuts will not close the gap.Restoring sustainability requires a focused reform agenda:align labour with flexible workloads,expand work sharing upstream,use more automation,reduce retail acceptance costs,and grow parcel services.These changes will not be pol
4、itically easy,but without reform,Canada Post will require permanent subsidy or face forced contraction.CENTRE FOR CANADIAN INNOVATION AND COMPETITIVENESS|APRIL 2026 PAGE 2 CONTENTS Key Takeaways.1 Introduction.2 Structural Problems.3 The False Choices.5 Privatization.5 Subsidy.5 Service Cuts.6 A Cos
5、t-Cutting Agenda.6 Align Labour Deployment with Address-Based Demand.6 Use Work Sharing to Reduce Costs.7 More Automation.9 Rationalize the Retail and Real Estate Footprint.10 Grow Parcel Revenue.10 Maintain Focus on Core Postal and Logistics Functions.11 Conclusion.12 Endnotes.13 INTRODUCTION Canad
6、a Post is Canadas only universal physical mail delivery network.It reaches every household and business,regardless of location or profitability.That reach continues to support core economic and civic functions,from business billing and payments to legal notice and government correspondence.It remain