Message from Michael Sabia, Clerk of the Privy Council and Secretary to the Cabinet

November 4 2025 - Defence Stories

Dear Colleagues,

The Government has now presented the 2025 Budget. It is a budget built on:

• New investments in Canada’s future and a new way for government to invest designed to incent the private sector to step up to create good jobs for Canadian workers.
• A new industrial growth policy for the country based on major projects, defence investments, housing, climate policy, and the diversification of trade around the world.

Much of the Budget is based on the principle “spend less to invest more”.  For that reason, as you know, this summer the Government launched a comprehensive review of expenditures.  That work is now complete.  As a result, the Government has decided to reduce program spending and administration costs by about $60B over the five years of the Budget framework.

That is a big number.  It will involve reducing a number of programs, limiting the scope of some and terminating others outright.  Inevitably, along with reduced spending comes reductions in the size of the public service.  In all, the public service will need about 40,000 fewer people, including some reductions already underway.

That number has real consequences for people who serve their country and for their families.  I am not going to try to diminish those consequences.  They are real.

In moving this process forward we are going to be guided by four principles – commitments.

1. We will act in a fully transparent way.  Those affected will have all the information we can give them.  We will be open and straightforward.
2. We will make decisions quickly because to not do so simply prolongs uncertainty which is in no one’s interests.
3. We will provide all the support possible in helping colleagues navigate through their work force adjustment, selection of employees for retention or lay-off (SERLO) and early retirement options.  They will have access to the tools and supports they need.
4. And finally, we will be guided by these basic values:  be fair, be consistent and respect diversity – a source of strength for the public service.

The work of implementing the Budget, including the workforce changes, will begin only if the Budget has the support of Parliament – something we hope to know later this month.

As I said, in my letter in July when I rejoined the public service, Canada is at an important moment in our history.  The stakes are high.  So are our capabilities – our capacity as public servants to seize this moment for the good of Canada and future generations.  The Government has defined its priorities.  Our job is to relentlessly focus on them.  Our job is to simplify so that we can move faster.  To take a few risks to get things done.  And most of all, to act with a sense of personal accountability to deliver the results the country needs. That is the long tradition of the Canadian public service. Stepping up in challenging times. Serving Canadians with dedication and professionalism. Thank you for all you do.

Michael Sabia