Canada Post is moving ahead with a plan to phase out most remaining door-to-door mail delivery, replacing it with community mailboxes as part of a broader effort to reduce costs and modernize operations.

The Crown corporation has begun preliminary work and consultations in several communities as it prepares to convert roughly 136,000 addresses in the first phase of the transition, expected to begin in late 2026 and continue into 2027. The initial rollout is part of a larger national program that would see about four million addresses shifted away from home delivery over the next five years.

Officials say about three-quarters of Canadian addresses already receive mail through centralized systems such as community boxes or apartment panels, leaving a shrinking share still served by door-to-door delivery.

The change comes as Canada Post faces mounting financial pressure tied to declining letter volumes and rising delivery costs. Reports indicate the corporation has recorded significant losses in recent years, with projections showing continued deficits without structural changes.

The shift to community mailboxes is expected to generate substantial savings, with estimates in the hundreds of millions of dollars annually. At the same time, the move reflects a broader transformation in the postal system as parcel delivery and e-commerce reshape demand.

Canada Post has indicated the transition will be gradual, with each conversion taking several months and involving local planning to determine mailbox locations. Parcels that do not fit in community compartments or require signatures would still be delivered to the door or held for pickup.

The plan follows earlier federal direction allowing the corporation to end traditional home delivery as part of a wider restructuring effort. Previous attempts to expand community mailboxes were halted nearly a decade ago after public backlash, but financial challenges have renewed pressure for change.

Labour relations remain a factor, with postal workers engaged in ongoing contract negotiations after previous disputes and strikes tied to proposed service changes.

The transition is expected to unfold over several years, with additional communities identified as the program expands.