Canada Post reports $1.3B operating loss in 2024
Canada Post has faced significant financial challenges in recent years, as evidenced by its latest annual report which reveals a $1.3 billion loss in operating expenses for 2024. To mitigate some of these losses, the Crown corporation has been forced to sell off certain ventures, such as its logistics business which was sold in January of the previous year.
When accounting for divestments and excluding tax, Canada Post’s total losses for the year amounted to $841 million. This represents a considerable increase from the $748 million loss reported in 2023 and the $548 million loss in 2022. The last time Canada Post reported a profit was back in 2017, and since 2018, the corporation has accumulated a total loss of $3.8 billion.
In a news release, Canada Post attributed its financial struggles to declining volumes and revenues in both traditional letter and parcel delivery services. The corporation also faces stiff competition from private parcel carriers, further exacerbating its financial woes. CEO Doug Ettinger emphasized the urgent need for change, stating that the current structure of Canada Post is unsustainable and must evolve to secure its future.
Notably, revenue from parcel delivery alone saw a significant decline of $683 million compared to the previous year, underscoring the challenges faced by the Crown corporation in the competitive delivery market.
Additionally, Canada Post’s financial woes were compounded by a postal worker strike that occurred late last year, resulting in a loss of $208 million. As negotiations continue between the union and the corporation, another potential strike looms on the horizon. The previous strike was resolved when the federal government intervened and ordered employees back to work under their existing contracts, which were extended to allow for further bargaining.
However, with the expiration of these contracts and unresolved issues such as worker pay, benefits, pensions, and Canada Post’s plan to hire part-time workers for weekend deliveries, tensions remain high. The Canadian Union of Postal Workers issued a strike notice recently, although talks are still ongoing to reach a resolution.
As Canada Post grapples with mounting financial losses and labor disputes, the need for strategic reforms and decisive action to ensure its long-term viability has never been more pressing. The corporation must adapt to the evolving landscape of postal services and address its operational challenges to secure a sustainable future.
