Canada Post is planning to begin the process of phasing out home deliveries for roughly 4 million addresses over the next five years.

According to the Associated Press, Canada Post will start the phase-out by converting 136,000 addresses in 13 communities from home delivery to community mailboxes, as part of a six to nine month process. The government-owned corporation expects to save as much as $400 million Canadian ($291.96 million) annually by scaling back home delivery. CP said that it won't lay off workers even with the scaled-back home deliveries, with a spokesperson for the company stating that letter carriers will be given work elsewhere. 

CP estimates that it lost $1 billion Canadian ($731 million) in the first nine months of 2025 alone, as part of what the company described as the "most severe and challenging financial situation in its history." Despite receiving a $1 billion federal loan at the start of last year, CP warned in November that without another cash infusion, it would be fully out of funds by the end of the fiscal year. The government eventually stepped in with another $1 billion loan in February 2026, to ensure that mail service could be maintained while the company looks for ways to stay solvent long term.

CP's money troubles have been driven by several factors, having seen its mail volumes collapse by more than half over the last two decades, while its parcel deliveries have struggled to keep pace with Amazon's dominance across Canada's logistics networks. Prolonged labor talks with CP's union have also further strained the company's finances, having driven away business customers during a series of rotating strikes over the last year-plus.

Union members began voting on ratifying a new proposed contract on April 20, which would include a 6.5% wage increase in the first year of the deal, a 3% bump in year two, and then wage increases based on the Consumer Price Index in years three through five. The deal received support from 60% of the union's board, although the union's president has urged members to reject the deal, having criticized it for not raising wages enough, and for a lack of improvements to health and dental benefits.