The federal government is quietly setting the stage for what could be the most significant restructuring of Canada’s public service leadership in over a decade. According to internal Treasury Board documents obtained last week, senior officials are developing plans to reduce the number of executives across federal departments – a move that signals a potential shift in how Ottawa manages its top bureaucratic ranks.
This initiative comes as the Liberal government faces mounting pressure to address what some critics have called “top-heavy” management structures within the federal workforce. At present, the executive cadre in the public service has grown to approximately 7,200 positions, representing an increase of nearly 21% since 2015 when the Trudeau government took office.
“We need to right-size our executive functions to create a more nimble and responsive public service,” said Treasury Board President Anita Anand during a committee appearance last month. “This isn’t about cutting services, but ensuring we have the right leadership structure to deliver for Canadians.”
The Treasury Board Secretariat, which oversees public service management, has established a working group to examine the current distribution of executive positions and identify where consolidation might be possible. Sources familiar with the initiative suggest the goal is to reduce the executive ranks by 10-15% over the next three years through attrition, reorganization, and voluntary departures.
This approach appears designed to avoid the more dramatic cuts seen during the Harper government’s deficit reduction action plan, which eliminated thousands of public service positions between 2012 and 2015. Instead, the current strategy focuses specifically on senior management tiers.
For many public servants, the news brings mixed reactions. Debi Daviau, president of the Professional Institute of the Public Service of Canada, expressed cautious support for the initiative, provided it’s implemented thoughtfully.
“If this means fewer layers between decision-makers and frontline employees, that could be positive,” Daviau said in a phone interview. “But we’ll be watching closely to ensure this doesn’t create unreasonable workloads for remaining managers or impact service delivery.”
The push to streamline executive ranks comes against a backdrop of evolving work arrangements. Since the pandemic, approximately 60% of federal employees continue to work in hybrid or remote settings, according to Statistics Canada data released in February. This shift has prompted questions about whether traditional management structures remain necessary in a more distributed workforce.
“The pandemic forced us to rethink how we organize teams and provide leadership,” explained Dr. Amanda Clarke, associate professor of public administration at Carleton University. “There’s growing evidence that flatter organizations can be more effective in digital work environments, though the transition requires careful planning.”
Behind closed doors, some departments have already begun preliminary work to identify potential restructuring opportunities. The Canada Revenue Agency and Employment and Social Development Canada – two of the largest federal employers – are reportedly conducting internal reviews of their executive complement.
For Canadians outside the bureaucracy, the impact of these changes may not be immediately visible. However, experts suggest that a more streamlined leadership structure could eventually lead to more responsive government services and potentially significant savings.
“Executive salaries in the federal public service range from around $125,000 to over $300,000 annually,” noted Aaron Wudrick, domestic policy program director at the Macdonald-Laurier Institute. “When you factor in benefits and support costs, reducing even a few hundred positions represents substantial long-term savings.”
The Treasury Board has been careful to frame this initiative as a modernization effort rather than a cost-cutting measure. In a statement provided to media outlets, a spokesperson emphasized that the goal is “building a public service that is structured to meet today’s challenges and tomorrow’s opportunities.”
This language reflects the political sensitivities around public service staffing. The Conservatives have frequently criticized the growth in bureaucracy under the Liberal government, while public sector unions remain wary of any initiative that might signal broader workforce reductions.
Beyond the numbers, this restructuring effort may also provide insight into how the federal government envisions the future of public service work. Internal documents reference the need for “new leadership models suited to digital government and flexible work arrangements” – suggesting this initiative may be part of a broader transformation agenda.
As departments begin planning potential executive reductions, questions remain about implementation timelines and how decisions will be made about which positions to eliminate or consolidate. The Treasury Board working group is expected to deliver recommendations by early fall, with gradual implementation beginning in early 2024.
For a government heading toward an election year, the political calculus is delicate. Demonstrating fiscal responsibility through bureaucratic streamlining could appeal to certain voters, but the Liberals will need to avoid the perception of undermining public services that Canadians rely on.
Whatever the political implications, the initiative represents an important moment of reflection about how our federal institutions are structured and managed. As one senior public servant who requested anonymity put it: “This conversation is overdue. The question isn’t just how many executives we need, but what kind of leadership will best serve Canadians in the years ahead.”
