CPA Canada cuts workforce ahead of split with Ontario and Quebec

The Chartered Professional Accountants of Canada will cut 20 per cent of its workforce ahead of the withdrawal of the national organization by the provincial regulators of Ontario and Quebec.

The organization, which represents chartered professional accountants across Canada, had about 400 employees across the country before the cuts.

CPA Ontario and the Quebec CPA Order announced last June that they would withdraw from CPA Canada, triggering an 18-month countdown to the split.

Pamela Steer, president and CEO of CPA Canada, said the pending exit of Ontario and Quebec prompted the review, which resulted in the decision to streamline the organization “to position CPA Canada for long-term sustainability.”

In a memo to staff obtained by The Canadian Press last week, Steer said despite much discussion and ongoing efforts, Ontario and Quebec will not change their current path, meaning they will leave CPA Canada in December.

“The impending issuance of CPA Ontario and CPA Quebec leaves us in a challenging operating environment,” Steer wrote in the memo.

“After careful consideration of future needs, it has become clear that organizational change is necessary to ensure the long-term success of CPA Canada, which serves members and the profession well.”

CPA Canada underwent a management review over the past five years before the two organizations announced their departure. But the Quebec CPA order and CPA Ontario are stuck on some key governance issues with the national organization.

“Our differences are not trivial issues. They are fundamental differences on fundamental issues,” said Carol Wilding, president and CEO of CPA Ontario, in an interview last fall.

Both organizations cited concerns about CPA Canada's financial transparency regarding education programs, which the national body has challenged. In addition, CPA Canada said the two provincial groups sought stronger representation on the national board.

CPA Canada was established in 2013 to bring together the various professional accounting organizations and designations. A national organization is responsible for standards and coordinates education and examinations, while regional organizations are responsible for regulation and enforcement.

The Ontario and Quebec organizations previously said their departure would not disrupt the unity of the accounting profession, but CPA Canada said their decision threatens the profession.

None of the provincial organizations saw job cuts as a result of Canada's decisions to split with CPA, an official confirmed Monday.

Both organizations said they are committed to working with CPA Canada and their provincial counterparts on issues such as education and setting standards, and to provide financial support to those areas.

This report by The Canadian Press was first published on February 12, 2024.