Service Canada: 800 jobs cut

Service Canada laid off approximately 800 workers as part of a broader shift to digital and AI-powered service delivery, automating processing of employment insurance, pensions, and other benefits. The connection to AI is moderate — while the company is investing in AI capabilities, the layoffs were attributed to broader restructuring alongside technology adoption. Of the 800 total positions affected, our methodology estimates that approximately 320 roles (40%) are attributable to AI-driven changes. This is part of a broader pattern in Government / Services where companies are restructuring operations around AI capabilities while reducing headcount in functions susceptible to automation.