Canadian Businesses Plan Most Workforce Cuts Since 2016 Amid Trade Headwinds
A Bank of Canada survey reveals 21 percent of firms expect to cut staff amid U.S. trade tensions. While sentiment improved, consumers remain wary about debt.
Insights:
The Bank of Canada released its fourth quarter business outlook survey on January 19, 2026, revealing that Canadian business sentiment remains subdued despite a marginal improvement in overall outlook. The data shows that 21 percent of firms in Canada 
CAare planning to reduce their workforces over the coming year, marking the highest rate of planned staff cuts since the second quarter of 2016, when 22 percent of companies reported similar intentions. This trend underscores the persistent challenges facing the labor market as corporate leaders navigate a period of weak economic conditions and geopolitical uncertainty.
CAare planning to reduce their workforces over the coming year, marking the highest rate of planned staff cuts since the second quarter of 2016, when 22 percent of companies reported similar intentions. This trend underscores the persistent challenges facing the labor market as corporate leaders navigate a period of weak economic conditions and geopolitical uncertainty.
