Saturday February 7, 2026 | OTTAWA, ON [Posted at 2:43 pm | Updated 3:37 pm PT]
Analysis by Mary P Brooke | Island Social Trends [VICTORIA, BC]
It was just one year ago that Canada Post was bailed out by the federal government with a $1.034 loan to cover operational expenses, in order to prevent operational collapse.
Today Canada Post has announced that it has received another one-year operational support loan, this one in the amount of $1.01 billion. Close enough.
Both loans are repayable.
The new funding will be available to the Corporation through the government’s 2025-26 fiscal year.
“This short-term financing liability, which is within the regulations of the Canada Post Corporation Act, is designed to ensure the Corporation can maintain its solvency and continue operating as it continues to deal with significant financial challenges,” said Canada Post in a statement received by Island Social Trends today.
Short-term bridge:
This year the loan is described as “a short-term financial bridge”, implying that more specific expectations must be met compared to last year.
“While Canada Post’s legislated mandate requires it to be financially self-sustaining, the corporation has accumulated significant losses in recent years, making clear that maintaining the status quo is not an option and that a clear plan is needed to restore long-term stability,” Public Services and Procurement Canada is reported as saying in a statement on Thursday.
No surprise:
In November 2025 the Crown corporation said it would need another bailout in short order as the January 2025 amount that was expected to carry it through to the end of the fiscal year in March would be used up by the end of 2025.
Canada Post said it would need access to short-term financing for another next 12 months.
Staying afloat while adapting:
The strategy underpinning this loan is to keep the company afloat while it transitions to a new operational model (including part-time and weekend delivery) — particularly as it pertains to workers.
The financial struggles of Canada Post have been known for years. The postal service has been falling behind on solvency because of an imbalance between what the market requires of its services and the locked-in demands of their unionized workers.
“We have submitted our proposed transformation plan to the Government of Canada. The plan details the decisive action we are prepared to take to deliver the services Canadians need in a way that is financially sustainable. We continue to work with the government to finalize our plans to modernize operations and secure the postal service for Canadians into the future,” said Canada Post in their statement to media today.
The recovery for this crown corporation will be slow indeed.
Changes employment, including offers of early retirement, will dovetail into the broader federal government plan of steering jobs in the macro-economy through a process of reskilling and retraining for the digital and AI-driven era.
===== RELATED:
- Reskilling as part of federal supports: auto-making and more (February 6, 2026)
- Canada Post AGM: evidence of small steps forward (November 20, 2025)
- Canada Post & their workers on a journey to new realities (October 6, 2025)
- Quietly stabilizing Canada Post with a $1.034 billion loan (January 24, 2025)
- NEWS SECTIONS: CANADA POST | JOBS & EMPLOYMENT | JOB TRAINING & RETRAINING