The Canada Revenue Agency has begun issuing workforce adjustment notices to 735 employees across the country, including 534 members represented by the Union of Taxation Employees.
The notices were scheduled to be delivered on Wednesday, October 28, 2026, according to the union, which said employees in every region are affected.
The announcement does not mean all 735 employees have been laid off.
Instead, an affected notice starts a formal workforce adjustment process in which positions may be eliminated, employees may be offered other work or voluntary departure options, and further decisions may follow.
Table of Contents
What the CRA workforce adjustment involves
The Union of Taxation Employees said the exercise covers five CRA branches: the Appeals Branch; the Assessment, Benefit, and Service Branch; the Commissioner’s Office; the Human Resources Branch; and the Compliance Programs Branch.
The union said the reasons differ by branch and include the end of pandemic-related funding and workloads, expenditure reductions, budget pressures, organizational streamlining and changes in workload.
Other factors cited include centralization, harmonization, expanded digital or self-service delivery, and regional or organizational restructuring.
The affected employees are not concentrated in one city or region, with the union describing the notices as a Canada-wide measure.
An affected notice is not the same as a layoff
Under the federal workforce adjustment framework, employees receive an affected notice when their positions may no longer be required and the employer needs to complete further analysis.
A later notice can establish that a position is surplus or that an employee is subject to a layoff determination process.
The federal government says the workforce adjustment process is intended to provide alternative employment opportunities wherever possible and to support employees who leave the public service under the applicable rules.
Options and protections can vary according to an employee’s bargaining unit, collective agreement and individual circumstances.
The government’s guidance says employees who receive an affected notice should speak with their manager, human resources representative or bargaining agent to understand their options.
What affected CRA employees should do next
The Union of Taxation Employees advised employees to read their letters closely because the documents set out the next steps and deadlines that apply to each individual case.
The union also urged affected workers to contact their local representatives before making decisions about available options.
The CRA is expected to hold information sessions for affected employees in the coming weeks.
The Public Service Alliance of Canada, which represents UTE members, is also expected to provide additional information and resources.
Employees may be required to respond within specific timelines depending on whether they receive an affected, opting, surplus or other workforce adjustment notice.
Part of broader federal workforce reductions
The latest notices come as federal departments and agencies review staffing levels and spending under the government’s broader expenditure-reduction plans.
The federal government has said its workforce reduction strategy will use a mix of attrition, vacancy management, program changes and workforce adjustment measures.
Government guidance says Budget 2025 identified savings of $13 billion annually by 2028-2029 and set a goal of returning the federal public service to a more sustainable workforce level.
The CRA has previously said it is reviewing its operational and workforce requirements as temporary pandemic programs wind down and the agency adjusts to changing workloads.
Earlier in 2026, union and government documents identified other CRA employees as affected by workforce adjustment measures, but the October 28 announcement represents a separate and larger notification wave involving 735 employees.
Why the notices matter
The notices could affect how several CRA branches deliver services, particularly where the agency is centralizing work or expanding digital and self-service channels.
They also create uncertainty for employees whose positions may ultimately be changed or eliminated, even though the final employment outcomes have not been announced.
For Canadians, the immediate impact is not yet clear because the CRA has not publicly outlined specific service reductions or changes linked to the 735 notices.
The next significant developments are likely to come through employee information sessions, further workforce adjustment letters and decisions on reassignment, voluntary departure, surplus status or layoff.
The union said it will monitor whether the CRA complies with the workforce adjustment provisions in the relevant collective agreements.
Frequently Asked Questions
How many CRA employees received workforce adjustment notices?
The exercise affects 735 CRA employees, including 534 members represented by the Union of Taxation Employees.
Does an affected CRA notice mean the employee has been laid off?
No. An affected notice means a position may no longer be required and begins a process that can lead to reassignment, voluntary departure, surplus status or layoff.
Which CRA branches are involved?
The Appeals Branch, Assessment, Benefit, and Service Branch, Commissioner’s Office, Human Resources Branch and Compliance Programs Branch are involved.
Why is the CRA conducting the workforce adjustment exercise?
The reasons cited include budget pressures, the end of pandemic-related work, workload changes, centralization, digital delivery and organizational restructuring.
What should affected CRA employees do?
Employees should read their notice carefully, track all deadlines and contact their union representative, manager or human resources office before making decisions.
Fact-Checked: Key figures, affected branches, timing and workforce adjustment procedures were checked against the Union of Taxation Employees notice and Government of Canada workforce adjustment guidance. ([ute-sei.org](https://www.ute-sei.org/en/news-events/news/new-workforce-adjustment-534-members-affected?utm_source=openai))
Disclaimer: The employment options and deadlines for affected CRA employees depend on the notice issued, bargaining unit and applicable collective agreement.