How departments will decide which jobs will go. 
Functionary masthead - by KATHRYN MAY
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Jan. 23, 2026  |  Unsubscribe   |    Sign-up page.   |    Past editions     

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Too many layers. Everyone knew it.

 

The executive ranks have been climbing for decades despite warnings about bloat and slow decision-making. Now a 12-per-cent cut is coming: about 1,120 executive jobs disappearing across 90 or so departments.

APEX breakdown

 

The cuts will ensure Canada’s executive hierarchy is “a pyramid, not a cylinder,” says one senior bureaucrat. The big driver is saving money. But it’s also about speed. Fewer layers, faster decisions. That’s the plan, anyway.

 

There are 9,155 bureaucrats who occupy five levels of executives (EX-1 to EX-5) between directors and assistant deputy ministers. But it’s not just them.

 

Many expect PCO clerk Michael Sabia to also trim the deputy minister ranks, too, as he reshapes the senior bench of public service leaders. He started with a pre-Christmas shuffle — bigger than any seen in years — and promised another. No one at the top is safe, it seems.

 

“The cuts are a shock to the system, like a taser,” says one senior official. But can cutting layers fix the public service and speed up decision-making like the Carney government expects?

 

Let’s dig in.

 

Today:

Classification creep and workarounds: Just two complaints.

One pie, many slices: How the executive hierarchy diverged.

Protect critical roles: Step one in the new playbook.

But is this reform? “Scarcity can be your friend.”

Corporate memory goes, too: When executives rush the exits.

The risk of becoming glorified assistants: The warning 10 years ago.

 

THE NUMBERS

“All those chickens have come home to roost”

We’ll start with a snapshot from the clerk’s annual report to the prime minister:

9,155: executives

50.1 average age

43.4: average age of public servants

36: deputy ministers

45: associate deputy ministers

56.9: average age of deputy ministers

52.9: average age of associate deputy ministers

53.4: average age of EX-4 to EX-5 (these are assistant deputy ministers)

49.9: average age of EX-1 to EX-3

 

The federal budget called for the elimination of 1,000 executive jobs over the next two years, including 650 positions flagged in the spending review last summer. The rationale: too many layers, too many bosses, an executive-to-employee ratio that’s out of whack.

 

To hit the target, deputies across the core public service must cut their executive ranks 12 per cent by March 2028. They’ve also been handed a playbook outlining what the hierarchy should look like — guidelines that will quietly determine how many executive jobs survive.

 

Separate agencies are urged to follow suit on the same timeline. Treasury Board has set a reduction target for each department. Those that already met it through the spending review are spared. Everyone else is on the hook. Executives are being reduced proportionately to — or more than — the non-executive workforce.

 

Now, insiders say this drive to reduce executives is first and foremost about saving money while sending send a loud, clear message — to Canadians and to rank-and-file public servants — that executives are feeling the pain of the cuts, too.

 

But done properly, it is supposed to speed decision making and improve murky accountability – two big priorities of Michael Sabia. It means flatten layers, distribute work more fairly among executives, better align responsibilities with pay.

 

It’s unclear whether the 12-per-reduction applies to deputy ministers. The easiest way to reduce the main pipeline to the top deputy posts is to not backfill associate deputy ministers as they retire. Stay tuned for the next phase of Sabia deputy-minister shakeup to see how many associate positions get filled.

 

OCHRO — the Office of the Chief Human Resources Officer — got the ball rolling last summer with a crackdown on executive growth, especially assistant deputy ministers. The complaints were familiar: classification creep, workarounds, promotions for special projects, endless reorganizations.

 

The pandemic accelerated the growth. So did the Trudeau government’s appetite for new announcements. Mounting geopolitical crises have further accelerated it. More initiatives, more crises, more executives to manage them. As one executive said: “All those chickens have come home to roost.”

 

At the time, OCHRO found the number of assistant deputy ministers had grown by 140, a 50-per-cent jump since 2015. There were 421 across departments when only 355 positions were approved — and some misclassified at levels higher than the jobs warranted. Departments were given guidelines and a December deadline to fix the problem.

 

More titles. Less work. Slower delivery. “The same pie is being sliced into smaller pieces,” OCHRO warned. "Jobs are being created without bigger mandates.”

 

The problem isn’t just too many executives — it was too many titles and too many rungs. Over time, the hierarchy grew in two directions.

 

First, the horizontal sprawl. Departments piled on “senior,” “associate,” and “assistant” titles to jobs that often did overlapping work at various levels.

 

Second, vertical stacking. Too many layers. Before anything could move, decisions had to travel up and down long approval chains: EX-1 to EX-2 to EX-3 to EX-4 and EX-5. Files bounced upward for sign-off, then back down for revisions. Things slowed to a crawl.

 

Both need to be flattened to shorten the chain of command. That’s the goal: fewer titles within each level, and fewer levels in the chain. By all accounts, the aim is to stop files from climbing the ladder more than three times. Fewer stops. Clearer accountability. Faster decisions.

 

THE FIX
What the playbook is telling departments

  1. Protect critical roles

Keep positions that:

  • Deliver the department’s core mandate or advance government priorities.
  • Support mission-critical operations where vacancies cause real problems.
  • Touch Canada’s economy, health, or security.
  • Manage legislative/regulatory functions or maintain public trust.
Six circles

                                                                                                                    Source: Treasury Board

In other words: these are the kind of jobs too risky to cut. The definitions are broad, though — which gives deputies room to manoeuvre.

  1. Flatten the layers

Make executives oversee more people:

  • Increase the span of control: Eliminate or merge any executive position managing fewer than three direct reports. (Admin staff don’t count.)
  • Cut unnecessary layers: Remove “associate assistant deputy minister” and other add-on titles with “senior” and “associate.” They should be rare, not the norm.
  • Fix compression: Target executives in jobs that are too similar to their manager or subordinates. It’s duplication.
  • Eliminate zero-report roles:If no one’s reporting to them, why do they exist?
  1. Stop classification creep: Classification creep happens when positions get upgraded without real changes in duties — often to justify higher pay or status. That’s how all those “senior” and “associate” titles proliferate. The solution is to:
  • Reclassify jobs to suit the work.
  • Consolidate or eliminate jobs sitting at the minimum point range for their level.
  1. Match the math

Deputies must check two things when they are cutting executives:

 

ADM count: Treasury Board sets ADM quotas by department size. The rule: match your quota to whichever size category you’re closest to. A department with 800 employees is technically “medium” (see the graphic below), but it’s closer to the small range. So it should have one ADM, not four. Got 10? You’re over quota. Cut.

 

Triangle shape: Treasury Board wants executives distributed like a pyramid: more at the bottom, fewer at the top. If you’re top-heavy or bulging in the middle, fix it. Cut some, reclassify some. Here’s the guideline, which is in line with existing distribution of executives across government now:

  • 52 per cent at EX-01 (entry level)
  • 26 per cent at EX-02
  • 18 per cent at EX-03
  • five per cent at ADM level (EX-04/05)
The triangle

                                                                                                Source: Treasury Board

  1. Minimize forced layoffs

Know your workforce, model scenarios, communicate early, match voluntary exits to cuts, facilitate job swaps (“alternation”), and plan succession. The bottom line: use flexibility to avoid forcing people out when there are other options.

 

Does delayering speed things up? Take the classic example of a briefing memo. A smart economist writes a briefing on an urgent priority and sends it up to their director. Director rewrites it. Sends it back. Economist revises it. Back up. Director-general makes more changes. Back down. More revisions. Back up through director, DG, to the assistant deputy minister. ADM has ideas. Down it goes again. Time ticks on while the memo yo-yos up and down. The urgent priority? Still waiting.

 

“It’s not just fewer senior people. They want people to be more empowered at the bottom end of that pyramid and find ways for them to brief up with their knowledge,” said one long-time executive.

 

SNIPPING POSITIONS
Can flattening lead to real reform?

This government doesn’t talk about reform, certainly not big-R reform. At best, some see it as a first step: a catalyst that forces departments to look at what they do, function by function —what to keep, what to stop doing, and how to manage what remains. By most accounts, many departments did that work over the summer as part of the spending review.

 

Michael Wernick, a former clerk and now Jarislowsky chair at uOttawa, says “snipping positions out of an org chart” is not reform. Real reform means getting under the hood — fixing the structures that govern hiring, firing, training, procurement, and technology. “You’ve got to actually get into the workflows, the approval chains, and take a hard look at the plumbing and wiring of the organization.”

 

But delayering is driven by spending cuts, and scarcity can spur reform, Daniel Quan-Watson argues.

 

Fewer people and less money push departments to rethink what they do, function by function, said the long-time deputy minister and former chief human resources officer (below). As he puts it, “scarcity can be your friend,” in making choices about what should be done.

Daniel Quan-Watson

Executives make up only about 2.5 per cent of the public service. The vast majority of public servants are frontline and operational workers. Most of them never see an executive, let alone an ADM or deputy minister.

 

Quan-Watson said the 24/7 pace of government isn’t slowing down. If departments keep doing everything they used to do — just with fewer resources and the same processes — the outcome won’t be sustainable.

 

Reform means deciding what you want to do, what you should do, and what you can afford to do, then designing the organization — including the roles of its executives — around those choices.

 

The peril of a rush for the exits. The government has a management problem at the top. Executives have high pride in their work but they run on fumes. APEX’s executive work and health study has shown it over the years.

 

Many executives routinely log 50-55 hours a week or more, with rising burnout, anxiety, sleep problems, and work/family conflict. Many say they’re thinking about quitting or retiring early.

 

That makes them prime candidates for the early retirement incentive once it’s approved when budget legislation passes in the spring. The incentive would waive pension penalties for those over 50.

 

But a rush for the exits would strip out years of corporate memory and leave departments grappling with a new round of management gaps.

 

THINK BACK 10 YEARS
There’s been plenty of warning

For years, officials have talked about collapsing the five executive levels into three — merging EX‑01 with EX‑02, and EX‑04 with EX‑05.

 

The scope, authority and influence of ADM jobs have been shrinking for a long time as power has shifted up to the Prime Minister’s Office and the Privy Council Office.

It’s been a decade since a landmark study on ADMs outlined the dramatic shrinkage.

 

It found that the tight inner circle was doing work that used to be handled a few layers below. Some study participants worried that once-powerful drivers of decisions were becoming “form-fillers” and glorified assistants to the deputy ministers.

 

The role was becoming “too small and narrow” to properly groom the next generation of deputy ministers, the resulting report warned.

 

“The overall objective,” it concluded, “must be to achieve a de-layering and flattening of organization structures, to clarify roles and expectations and to position ADMs to lead in a more forceful way than at present. There would be larger ADM jobs and, over time, fewer ADMs.”

 

A decade later, they’re giving it a try.

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Kathryn May

A bit about me. I write The Functionary as part of my work covering and analyzing the federal public service for Policy Options, where I am the Accenture Fellow on the Future of the Public Service. I've been reporting on the public service for more than two decades, covering parliamentary affairs and politics for the Ottawa Citizen and iPolitics. My work has been recognized with a National Newspaper Award and a Canadian Online Publishing Award. 

 

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