Amazon Layoffs in Canada: Government Threatens to Review Contracts After Quebec Warehouse Closures

OTTAWA, January 28, 2026 – The Canadian government has issued a sharp rebuke to Amazon and initiated a review of all federal contracts with the tech giant following its decision to close all seven of its warehouses in Quebec, a move that has resulted in over 1,700 job losses and sparked allegations of union-busting.

A Series of Major Workforce Reductions

The controversy stems from a series of major workforce reductions announced by Amazon over the past four months, affecting thousands of corporate and warehouse workers across its global operations.

In October 2025, Amazon announced a major corporate restructuring, targeting up to 30,000 corporate jobs worldwide. The company stated the cuts were part of a strategic shift to reallocate resources toward artificial intelligence (AI) and cost efficiency. This was followed by a separate announcement in January 2026 of significant layoffs within its cloud computing division, Amazon Web Services (AWS), affecting hundreds of employees globally, including in Canada.

The most recent and controversial action came on January 22, 2026, when Amazon announced the closure of all seven of its fulfilment and distribution centres in the province of Quebec. This decision directly eliminated over 1,700 permanent and temporary jobs.

Government Response and Union-Busting Allegations

The Quebec closures have drawn intense scrutiny and accusations of anti-union retaliation. This is due to the timing of the announcement, which came shortly after a landmark event in May 2024, when a warehouse in Laval, Quebec, became the first Amazon facility in Canada to successfully unionize. Amazon had challenged this unionization effort but lost its appeal at a labour tribunal in October 2024.

In a strongly worded letter made public, Canada’s Minister of Innovation, Science, and Industry, François-Philippe Champagne, expressed his “strong disappointment” and directly called on Amazon CEO Andy Jassy to “immediately reconsider” the decision. The Minister stated that the move was “inconsistent” with Amazon’s stated corporate values and raised serious questions about the company’s “commitment to Canada.”

Minister Champagne explicitly stated that the government would be forced to “review the business relationship that exists between Amazon and the Government of Canada.” This review directly threatens Amazon’s lucrative cloud computing contracts with the federal government, which are held by its Amazon Web Services (AWS) division.

Key Facts and Government Actions

Employee Rights and Severance Information

For the thousands of Canadian employees affected by these recent layoffs, understanding their legal rights is crucial. In Canada, non-unionized employees are protected by a combination of provincial employment standards legislation and common law.

Key points for affected employees to consider include:

• Severance Entitlement: Severance pay is not just based on the minimum standards set by provincial employment standards acts (like Ontario’s *Employment Standards Act*). Under common law, employees may be entitled to significantly more, based on factors like age, length of service, position, and the availability of similar employment.
• Common Law Entitlements: Common law severance can be as high as 24 months’ pay for long-term, senior, or specialized employees, depending on the specific circumstances and relevant court precedents.
• Severance Package Review: Employees are generally entitled to a reasonable period (often 5-10 days) to review any severance offer with a legal professional before making a decision. Attempting to negotiate for a better package rarely jeopardizes the initial offer.
• Wrongful Dismissal Claims: Even if a termination is part of a mass restructuring, employees may have grounds for a wrongful dismissal claim if they believe the stated reason is not the true cause for their dismissal.

Frequently Asked Questions

How many Amazon jobs have been cut in Canada recently?

In the most recent and significant action, over 1,700 direct jobs were eliminated with the closure of all seven Amazon warehouses in Quebec in January 2026. This figure does not include an estimated 1,600 indirect job losses at third-party delivery partners that relied on Amazon’s operations.

What was the government’s specific response to the Quebec closures?

Minister Champagne publicly stated that the government would be forced to “review the business relationship that exists between Amazon and the Government of Canada.” This includes a comprehensive review of all federal contracts with Amazon, including those with its highly profitable AWS cloud computing division.

What are the key rights for laid-off employees in Canada?

Non-unionized employees in Canada are entitled to a severance package based on common law, which considers factors like age, tenure, position, and the availability of similar employment. This common law entitlement often far exceeds the minimums set by provincial employment standards legislation. Employees generally have up to two years from the date of termination to pursue a legal claim for wrongful dismissal or insufficient severance.

What should affected employees do if they receive a layoff notice or severance offer?

It is strongly recommended that affected employees do not sign any severance agreement or release immediately. They should collect all relevant employment documents, seek independent legal advice from an employment lawyer (not the employer’s lawyer), and obtain a professional assessment of whether their severance package is fair and legally compliant before making any decisions.