Bank of Canada Layoffs in Canada: Employee Rights, Severance Pay, and What You Need to Know

On November 5, 2025, The Bank of Canada (BoC) announced it is cutting approximately 10% of its workforce — about 225 employees — by June 2026, as part of a broad government-wide push to reduce spending under Prime Minister Mark Carney’s administration.

Both Bloomberg and HR Reporter confirm that the central bank has already tightened budgets, reduced hiring, and expanded early retirement options, but these measures weren’t enough to meet its self-imposed savings target.

This guide explains what non-unionized Bank of Canada employees need to know about their rights, severance entitlements, and next steps if they’re affected by these cuts.

Who the Bank of Canada May Lay Off in Canada

According to internal memos reported by Bloomberg, every department will be affected by the reductions.

Roles potentially impacted include:

• Corporate services and administrative staff
• Financial analysts and economists
• IT, cybersecurity, and technical operations
• Policy, research, and regulatory support roles
• Communications, HR, and project teams

The Bank of Canada’s headcount grew considerably between 2019 and 2023 — from roughly 1,800 workers to 2,350 — and is now being brought back down as part of federal fiscal restraint efforts.

Know Your Rights When the Bank of Canada Lays You Off

If you are non-unionized, a BoC layoff is legally a termination without cause.

That means the Bank must provide:

• Full severance pay
• Proper notice or pay in lieu
• All compensation owed under common law, not just the minimum standards

Your severance package must reflect:

• Salary
• Benefits
• Bonus and incentive pay
• RSUs or equity (often mishandled without legal review)
• Vacation pay
• Any other earned compensation

Most non-unionized employees qualify for far more severance than the Bank initially offers.

Severance Packages for Bank of Canada Employees

Your severance amount depends on

• Age
• Length of service
• Position and level of responsibility
• Availability of similar jobs in your field

Non-unionized Bank of Canada employees can receive up to 24 months of severance pay.

The BoC may present a “standard package” that:

• Covers only ESA minimums
• Excludes RSUs or bonus entitlements
• Sets a short signing deadline
• Provides a lump sum with limited explanation
• Understates the true market value of your compensation

This is why you should always have your severance reviewed.

Potential Issues With Bank of Canada Layoff Notices

Some of the most common problems include:

• Incorrect or missing severance calculations
• Insufficient notice periods
• “Temporary layoff” language that doesn’t apply legally
• Unclear treatment of RSUs, bonuses, or benefits
• Pressure to sign quickly
• Missing compensation elements

Any one of these can indicate that your offer falls below your legal rights.

Common Red Flags in Bank of Canada Severance Offers

Be cautious if your termination package:

• Includes only a few weeks or months of pay
• Excludes benefits continuation
• Leaves RSUs or equity unaddressed
• Does not clearly outline bonus treatment
• Labels a permanent termination as a “restructuring”
• Comes with a 24–48-hour deadline
• Doesn’t explain the severance formula

These are all signs to speak with an employment lawyer immediately.

Wrongful Dismissal and Bank of Canada Layoffs

A wrongful dismissal occurs when the Bank of Canada fails to provide the full severance pay owed under Canadian law.

You may have a claim if:

• Your severance is too low
• Your contract’s termination clause is unenforceable
• You face pressure to sign quickly
• You lose your job during maternity, parental, disability, or medical leave
• Your role was classified as a “temporary layoff” with no true recall
• You were denied components of pay such as RSUs, bonuses, or benefits

Even government-related employers must follow Canadian employment law for non-unionized workers.

What to Do After the Bank of Canada Lays You Off

1. Don’t sign your severance offer until a lawyer reviews it
2. Gather all documents, including contracts and pension summaries
3. Use the Severance Pay Calculator for a quick baseline
4. Keep written records of your duties and job expectations
5. Speak to an employment lawyer as soon as possible

Most employees have two years to pursue a claim, but deadlines for signing packages are often artificial.

Frequently Asked Questions About Bank of Canada Layoffs

How much people is the Bank of Canada laying off?

About 225 employees, or 10% of staff, according to multiple reports.

Why is the Bank of Canada cutting jobs?

To meet 10% operating cost reductions by 2026 and contribute to the federal goal of $60 billion in savings.

Are layoffs happening across all departments?

Yes — reductions are occurring in all departments, per the bank’s spokesperson.

Can Bank of Canada employees get up to 24 months’ severance?

Yes — many non-unionized employees qualify for substantial common-law severance.

Does the Bank of Canada need to follow employment law like private employers?

Yes. Non-unionized employees have the same rights to full severance.

How Samfiru Tumarkin LLP Can Help With Bank of Canada Layoffs

If the Bank of Canada has laid you off — or you believe a restructuring may put your job at risk — speak with an employment lawyer before you sign anything.

Samfiru Tumarkin LLP has helped over 50,000 Canadians secure the compensation they’re owed, and has earned more than 3,000 five-star reviews across Canada.

Bank of Canada Interest Rate Decisions

The following is a recent history of interest rate decisions announced by the Bank of Canada:

Disclaimer: The materials above are provided as general information about the rights of non-unionized employees in Canada. It is not specific to any one company and SHOULD NOT be read as suggesting any improper conduct on the part of any specific employer, or a relationship between Samfiru Tumarkin LLP and a specific employer.