Massive Layoffs: Amazon Exits Quebec, Closing 7 Warehouses

Image Credit: Reuters

Amazon announced Wednesday that it will shut down all seven of its warehouses in Quebec within the next two months. The decision impacts approximately 1,700 full-time employees and 250 temporary workers in the Montreal area.

The e-commerce giant stated that the closures aim to deliver “long-term savings” to customers. However, a Canadian union that recently unionized an Amazon warehouse accused the company of using the move to undermine labor organizing efforts in the region.  

The closures include a fulfillment center, two sorting centers, three delivery stations, and an AMXL facility specializing in large goods like TVs and furniture. Amazon plans to shift package deliveries in Quebec to local third-party companies, returning to its pre-2020 model in the province.

“This decision was not made lightly,” said Amazon spokesperson Barbara Agrait, noting that impacted employees will receive a package that includes up to 14 weeks’ pay, transitional benefits, and job placement support. She explained the closures followed a “recent review” of the company's operations in Quebec.  

Canadian Innovation Minister François-Philippe Champagne criticized Amazon’s decision, expressing “dismay and frustration” after learning about the layoffs. He reportedly contacted Amazon’s Canadian leadership to voice his objections, emphasizing, “This is not how business is conducted in Canada.”

The closures follow a notable labor milestone in May when 240 workers at a Laval warehouse, near Montreal, became the first Amazon employees in Canada to unionize. Amazon challenged the union’s certification but lost at a provincial labor tribunal in October.  

Caroline Senneville, president of the union involved in organizing efforts, called the closures “a slap in the face for all Quebec workers.” She accused Amazon of attempting to thwart unionization efforts and vowed to take action, arguing the move violates Quebec’s Labour Code.

Michael Lynk, a professor emeritus of law at Western University, likened Amazon’s decision to a “Groundhog Day” scenario for Quebec. He referenced a similar situation from 20 years ago when Walmart Canada shut down its Jonquiere store shortly after its workers unionized, citing profitability concerns. The Supreme Court of Canada later ruled that Walmart had violated Quebec labor laws.

Paraphrasing text from "AP" all rights reserved by the original author.