KidsAbility is laying off 21 more workers after a first round of layoffs saw 37 employees let go in October 2025, but the organization says services will not be impacted.

In an emailed statement to CBC News, KidsAbility said “these decisions were not made lightly,” adding the layoffs “are a result our efforts to responsibly align our operations with available resources and service needs.”

“We will continue to adapt our programs and services to meet needs in a responsible and sustainable way,” the statement said.

KidsAbility is an organization that helps families of children with complex and special needs with various forms of therapy, including programs for speech, hearing, blindness or low vision, fetal alcohol spectrum disorder, physiotherapy, orthotics and autism. They have locations across Waterloo region and surrounding areas.

“Our focus is on ensuring long-term stability of KidsAbility so we can continue providing essential services to children, youth and families across the communities we serve. We are working carefully to ensure that care and support continue during this transition,” the statement said.

Workers who received layoff notices will continue in their roles until May 10.

Funding challenges in 2025

This latest round of layoffs comes after 37 workers were terminated on October 20 and 21 of last year.

• Have you been impacted by the cuts at KidsAbility? Email CBC K-W with your story.

The Ontario Public Service Employees Union (OPSEU), which represents unionized workers at the company at the time had confirmed 13 contract workers were terminated about two months before the end of their contract and 24 people were told their contracts would not be renewed once they ended on Dec. 26, 2025.

During the first round of layoffs, KidsAbility said it was pausing the applied behaviour analysis (ABA) therapy services program starting 2026 because it is “facing challenges … within an individualized, needs-based funding model.”

Workers who were terminated two months early were given one week of termination pay.

CBC News obtained an example of the latest termination letter given to employees at the organization. It’s unclear if payouts were offered to the affected employees.

Layoffs will ‘put more pressure on families’: union

In a statement posted online, OPSEU Local 258 warned the layoffs will have a serious impact on children and families who rely on the programs.

“At a time when demand for child treatment services continues to grow, cutting front-line roles will only put more pressure on families, push more children onto already lengthy wait lists, and worsen burnout and understaffing in the sector,” the statement said.

“Workers see firsthand how much progress can be lost when children do not have stable, ongoing care from skilled professionals.”

The union says it is currently engaged in collective bargaining with KidsAbility with the goal of “seeking transparency and financial rationale” behind the layoffs, “particularly the targeting of frontline and clinical roles for layoffs amid ongoing growth in management positions.”

OPSEU says the impacted programs will include early years, school years, school based rehabilitation services, behaviour support services, entry to school and specialized services.

Fergus location closed

KidsAbility’s site in Fergus will be indefinitely shutting its doors starting Friday.

In a statement to CBC News, KidsAbility explained the organization has been “planning for the expiration of the lease at the Fergus site for many months as the space no longer meets our operational needs.”

“We continue to explore alternative space options and community partnerships in the Fergus area,” the statement said.

KidsAbility says it has been working with families since early February to continue providing care during the transitional period.

“KidsAbility remains dedicated to supporting our community and will continue adapting our programs and services to meet evolving needs.”

In a statement posted on their website in February, KidsAbility confirmed virtual appointments will still be available for clients from the Fergus location. In-person appointments will be moved to the Guelph location.

KidsAbility says the layoffs are unrelated to the site closure in Fergus.