The Canada Revenue Agency (CRA) is facing a storm of criticism as its recent workforce reductions threaten to cripple taxpayer services, particularly at its call centres.
The Union of Taxation Employees (UTE) has sounded the alarm, warning that Ottawa’s aggressive cost-cutting measures could leave Canadians struggling to get timely answers to their tax queries.
With over 8,000 jobs slashed since May 2024, the agency’s ability to maintain service standards is faltering, raising serious concerns about the future of taxpayer support.
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Massive Job Cuts Hit CRA Call Centres Hard
Since May 2024, the CRA has reduced its workforce by more than 10%, eliminating over 8,000 positions.
A significant portion of these cuts has targeted contract workers at call centres, which the agency refers to as “contact centres.”
These facilities are critical for addressing taxpayer inquiries, especially during the busy tax season.
However, the reduction in staff has led to a noticeable decline in service quality, with longer wait times and fewer calls being answered.
Marc Brière, national president of the UTE, has been vocal about the deteriorating conditions.
“CRA call centres have been stretched thin for years, but the past year has seen a sharp decline in service standards,” he said.
“Further cuts, as demanded by the Carney government, will devastate our ability to serve Canadians effectively.”
The federal government, under Prime Minister Mark Carney, has mandated “ambitious” cost-saving measures across all departments.
For the CRA, this translates to a 7.5% reduction in program spending for the fiscal year starting April 1, 2026, followed by 10% in 2027, and a staggering 15% by 2028-29.
These targets, set to be finalized by August 2025 for the fall budget, have put immense pressure on the agency to streamline operations.
CRA’s Response: No Final Decisions, But Concerns Persist
CRA spokesperson Etienne Biram emphasized that the agency is still in the early stages of identifying cost-saving measures.
“No final decisions have been made,” Biram said, adding that the CRA is committed to minimizing the impact on both Canadians and its employees.
However, the agency acknowledged that the demand for phone support often exceeds its capacity, forcing some callers to rely on automated self-service options.
This shift to automation has raised red flags for the UTE.
Brière argues that call centre workers, many of whom are contract employees, are particularly vulnerable to further cuts.
“Contract workers are an easy target for reductions,” he said.
“But slashing these roles will make it harder for Canadians to get the help they need, especially when navigating complex tax issues.”
A History of Struggles at CRA Call Centres
The CRA’s contact centres have long faced challenges.
A 2017 Auditor-General report exposed significant inefficiencies, revealing that call centres blocked over half of incoming calls to maintain wait times of 30 minutes or less.
Following the report, the CRA embarked on a hiring spree, boosting staffing at its nine call centres nationwide.
This led to improved service levels, with the agency meeting its 180-day response target for low-complexity tax objections 94% of the time in 2018-19 and 97% in 2019-20.
However, the COVID-19 pandemic disrupted this progress.
Government relief programs complicated tax filings, causing response rates to drop to 76-81% during the pandemic years.
Since 2023, the situation has worsened significantly, with the CRA meeting its service standard only 61% of the time in the 2023-24 fiscal year.
The UTE attributes this decline to reduced staffing levels, particularly among contract workers.
Contract Workers Bear the Brunt of Cuts
The CRA’s reliance on contract workers has made them a prime target for cost-cutting.
Agency data show a sharp decline in contract employees, from 15,323 in March 2024 to 11,014 a year later.
Call centre staffing has also plummeted, dropping from 6,704 employees during the pandemic to just 4,133 as of June 2025.
This represents a nearly 40% reduction in some centres, such as the one in Calgary.
Two Calgary call centre employees, speaking anonymously due to restrictions on public statements, described the intense pressure they face.
“We can’t answer many calls because there simply isn’t enough time in a shift,” one employee said.
On average, agents handle 20-30 calls per day, but complex inquiries often require more time than the CRA’s directive to minimize call duration allows.
“Taxpayers are frustrated after waiting over an hour, and we’re doing our best, but there aren’t enough of us,” the other employee added.
Union Appeals to Finance Minister
In a bold move, the UTE wrote to Finance Minister François-Philippe Champagne last week, urging him to visit a CRA call centre to witness the “strained” working conditions firsthand.
Employees are reportedly overwhelmed, handling a relentless volume of calls that leaves them exhausted.
Brière emphasized that understaffing not only affects morale but also leads to poorer service quality.
“When agents are stretched thin, the likelihood of errors increases, and taxpayers suffer,” he said.
CRA’s Push for Automation: A Flawed Solution?
To address the growing demand for taxpayer support, the CRA has introduced an AI-powered live chat service.
However, a recent investigation by The Globe and Mail revealed that fewer than 100 agents have been trained to support this pilot program, leading to widespread dissatisfaction among users.
Many Canadians report that the chat service fails to address complex tax questions, leaving them frustrated and without resolution.
Brière criticized the CRA’s reliance on temporary fixes, calling the approach a “short-term, Band-Aid solution.”
He argues that the agency’s practice of hiring seasonal workers for tax season and failing to renew contracts undermines long-term efficiency.
“The CRA needs a stable, well-trained workforce to handle taxpayer inquiries effectively,” he said.
Taxpayers Caught in the Crossfire
The decline in service standards is already affecting Canadians.
For many, the CRA’s call centres are the primary point of contact for resolving tax-related issues, from filing disputes to clarifying assessments.
With fewer agents available, wait times have skyrocketed, and the quality of responses has suffered.
The UTE warns that further cuts could exacerbate these problems, leaving taxpayers with limited options for support.
The CRA, however, maintains that its workforce fluctuations are normal due to the seasonal nature of tax season.
Spokesperson Nina Ioussoupova noted that the agency prioritizes rehiring trained contact centre agents when demand spikes.
But for Brière, this approach falls short. “Relying on temporary workers without investing in long-term solutions is a recipe for failure,” he said.
A Call for Action
As the CRA prepares to meet Ottawa’s cost-cutting demands, the stakes are high for both employees and taxpayers.
The UTE is pushing for greater investment in call centre staffing and training to restore service standards.
Meanwhile, Canadians are left wondering whether they’ll be able to get the help they need when tax season rolls around.
With the 2025 budget looming, all eyes are on the Carney government and the CRA to strike a balance between fiscal responsibility and maintaining essential services.
For now, the future of taxpayer support hangs in the balance, and the consequences of further cuts could reverberate for years to come.
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