The Bank of Canada is set to reduce its workforce by approximately 10 per cent, affecting about 225 employees. This move aligns with Prime Minister Mark Carney’s initiative to decrease government expenditures. According to a memo seen by Bloomberg News, these job cuts are slated to occur “over the next few months” and are expected to be finalised by June. The Bank of Canada is the nation’s central bank, responsible for monetary policy and promoting a stable financial system. It works to keep inflation low and stable, and to ensure the Canadian economy performs well.
Prior to this decision, the bank had already implemented several cost-saving measures. These included lowering non-salary budgets, freezing job vacancies, and offering early retirement packages to employees. However, these actions were insufficient to meet the 10 per cent budget reduction target committed to by the end of 2026. The bank is responding to government pressure to cut costs.
A spokesperson for the Bank of Canada confirmed the organisation’s commitment to aligning with Carney’s request for savings, similar to its approach with previous government programs. Paul Badertscher, a spokesperson, stated via email that the central bank aims to achieve a 15 per cent total budget reduction between 2026 and 2028.
Badertscher added that “Reductions are happening in all departments,” while assuring that the bank will “make sure that the bank remains able to deliver on its mandate for Canadians.”
