The Canada Revenue Agency (CRA) has warned 735 employees that their jobs may be affected, and up to 260 are expected to leave in the coming months. As of Nov. 5, 2026, there is no evidence that refunds or benefit payments will be slower because of the cuts, and the agency says services will continue without disruption. The most likely pressure point is the phone: wait times were already long before this round of cuts, and a union says fewer staff will make service worse.
Although this is a Canadian story, it matters to readers in the U.S. who file Canadian returns, including dual residents, cross-border workers and Americans living in Canada.
What the CRA actually announced
A total of 735 executive and non-executive employees were notified that their positions may be affected as part of the workforce adjustments. The notices went out on October 28. The 735 figure is not the number of layoffs. The CRA guaranteed continued employment to 110 of those affected. Up to 260 employees are expected to be laid off in the coming months.
The Public Service Alliance of Canada said 534 members of its Union of Taxation Employees were among those notified. The agency has been shrinking for some time. In April, the CRA said up to 210 jobs were being cut, mainly linked to the winding down of the Federal Fuel Charge. Spokesperson Etienne Biram said the latest changes reflect structural changes meant to align the CRA’s services and programs with its evolving business needs.
Will the cuts delay your tax refund?
Probably not for a simple, on-time return filed electronically. Most of that work is automated. The CRA’s own public statement says it remains dedicated to protecting services that Canadians rely on and to minimizing impacts on employees.
The unions disagree. PSAC’s national president said cutting jobs is how you increase delays and frustrations for people trying to reach services. Adam Jackson, who leads the Union of Taxation Employees, predicted a “trickle-down effect” that could hurt service delivery.
Filing method matters more than headcount. Per the CRA’s official page, paper returns are usually processed within 12 weeks. Online returns are typically quicker, with the CRA’s target around two weeks. Some third-party guides still cite eight weeks for paper filers, so check the CRA’s current processing-times tool before you count the days.
Phone wait times: the real risk
The best hard data predates the new cuts. Canada’s Auditor General reported in October 2025 that callers choosing to speak with an agent waited on average 31 minutes in 2024–25, and just 18% got through within 15 minutes. The CRA received more than 32 million calls that year, and just over 10 million reached an agent.
Accuracy was also a problem. In the auditors’ test calls, responses to general individual-tax questions were accurate only 17% of the time. That is worth remembering if you plan to rely on a phone agent for answers.
These figures describe last year’s service, not this season’s. Nobody has yet published wait-time data showing how the latest cuts affect callers, and the union’s warnings are predictions rather than measured results.
What it could mean for benefits
Benefits such as the Canada Child Benefit and the Canada Groceries and Essentials Benefit are calculated based on your tax return. The practical risk is not that the cuts stop payments. It is that if your return is missing, late or contains outdated details, fixing it may require a call that is hard to get through. Filing early and keeping your account information current reduces the chance you will need an agent.
Key details
| Item | What is confirmed (as of Nov. 5, 2026) |
|---|---|
| Employees notified | 735, on Oct. 28 |
| Expected departures | Up to 260 |
| Guaranteed continued employment | 110 of those notified |
| Union members notified | 534 (Union of Taxation Employees) |
| Avg. wait for an agent, 2024–25 | 31 minutes (Auditor General) |
| Calls answered in 15 minutes, 2024–25 | 18% vs. a 65% target |
| Paper return processing | Usually within 12 weeks (CRA) |
| CRA position on service | No disruption expected |
How to protect your refund this season
- File electronically with certified software rather than mailing a paper return.
- Set up direct deposit so a refund isn’t held up in the mail.
- Use CRA My Account to track your return and check your status online rather than calling.
- Gather slips early and file accurately, since errors can trigger reviews that need a human.
- If you are newly eligible for benefits, file the prior-year return promptly.
For official figures, see the Auditor General’s report on CRA contact centres and the CRA’s paper filing guidance. CTV News has the original report on the notices.
FAQ
How many CRA jobs are being cut?
735 employees were told their jobs may be affected, but the CRA expects up to 260 to leave. It guaranteed continued employment to 110 of the 735.
Will my tax refund be late because of the cuts?
There is no confirmed evidence of delays so far. Electronic returns are largely automated, while paper returns and flagged returns depend more on staff.
How long are CRA phone wait times?
The most recent audited figure is an average of 31 minutes for callers who waited to reach an agent in 2024–25. No audited figure yet reflects the new cuts.
Does the CRA say service will suffer?
No. The agency says it is protecting services, while the unions representing its workers say the cuts will mean longer delays.
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