Bleeding money, Canada mail system slashes home delivery

OTTAWA

Canada has announced that its money-losing postal system would no longer provide home delivery five days a week, as it makes big cuts to remain viable.

As is happening in many countries around the world, Canada Post has seen a huge drop in mail volume, 3.5 billion pieces fewer per year compared to 20 years ago.

The system loses Can$10 million ($7.2 million) a day, said Public Services Minister Joel Lightbound.

"Canada Post is facing an existential crisis," Lightbound told a news conference without saying what would replace the current home delivery model. Canada Post is expected to announce an alternative.

Lightbound called on Canada Post to create more group mailboxes that neighbors share, the way three-quarters of Canadians already get their mail.

Canada Post must also come up with a plan to modernize rural delivery of mail.

The changes come after months of talks between Canada Post and its employees on working conditions. A strike that lasted nearly a month shut down the system in late 2024.

Canada is not the only country whose mail system is in trouble.

Denmark said its state-run postal system will end deliveries at the end of this year. And in Germany, Deutsche Post said it will eliminate 8,000 jobs to cut costs.