Canada Post lost $407M in 2nd quarter, says customers seeking out other parcel carriers

Canada Post Struggles with $407 Million Loss in Q2 2025

Canada Post has reported a staggering loss of $407 million in the second quarter of 2025, marking its largest quarterly deficit as parcel revenue takes a nosedive. The Crown corporation cited ongoing contract negotiations with its union as a major factor contributing to the financial turmoil.

Parcel Revenue Plummets

The latest figures from Canada Post reveal a significant decline in parcel revenue, with a $288 million drop and 25 million fewer packages delivered compared to the previous year. Since the beginning of the year, parcel revenue has plummeted by nearly half a billion dollars.

Labour Disputes and Strike Impact

The prolonged contract negotiations between Canada Post and the Canadian Union of Postal Workers have resulted in a deadlock, leading to a month-long strike last year. The uncertainty surrounding labour relations has pushed customers towards alternative delivery services, further exacerbating the decline in parcel volumes.

Union Demands and Company Response

The union’s latest offer includes demands for higher wages, weekend delivery, and the inclusion of part-time workers in the postal service. Despite rejecting Canada Post’s counteroffer earlier this summer, the union maintains a ban on overtime as negotiations stall.

Corporate Strategy and Criticism

Critics have accused Canada Post of steering business towards its competitor and subsidiary, Purolator, instead of strengthening its own network to boost parcel volumes. The union argues that the corporation should focus on revenue growth rather than blaming its workers for the financial woes.

Recommendations for Reform

An Industrial Inquiry Commission report has suggested substantial reforms for Canada Post to address its financial challenges, including phasing out door-to-door letter delivery in favor of community mailboxes. The report warns of an “existential crisis” for the postal service without immediate changes.

As Canada Post grapples with mounting losses and ongoing labor disputes, the future of the Crown corporation remains uncertain. Stay tuned for updates on this developing story.