Canada Post has reported a $1.3 billion loss in operating expenses in its annual report for 2024. To offset some of these losses, the Crown corporation sold off certain assets, including its logistics business that was sold in January of the previous year. Excluding tax implications and factoring in divestments, Canada Post’s losses amounted to $841 million in the past year. This figure surpasses the losses of $748 million in 2023 and $548 million in 2022, marking the first time since 2017 that Canada Post has failed to turn a profit. Overall, the corporation has incurred a total loss of $3.8 billion since 2018.
Canada Post attributed the decline in volumes and revenues for both traditional letter and parcel delivery services to stiff competition from private parcel carriers. CEO Doug Ettinger emphasized the need for urgent changes to address the financial challenges the corporation is facing.
Revenue from parcel delivery alone dropped by $683 million compared to the previous year. Additionally, the postal worker strike towards the end of the previous year contributed to a loss of $208 million. As negotiations continue, there are concerns about another potential strike, as employee contracts have expired with unresolved issues such as worker compensation and hiring practices.
Business owner Scott Wingfield, who operates an art product shipping business, expressed a lack of confidence in Canada Post due to its unreliability. He mentioned reducing his reliance on the postal service following the previous strike.
Experts, including business professor Marvin Ryder from McMaster University, warn that Canada Post’s financial losses could persist into 2025 if customer trust is not restored. Recommendations from a recent financial report suggest operational changes, such as ending door-to-door mail delivery and employing part-time workers for weekend deliveries, to enhance competitiveness and potentially secure the corporation’s future.
Ryder emphasized that implementing these changes within a short timeframe is crucial for Canada Post’s financial sustainability.