Amazon has announced the closure of all seven of its warehouses in Quebec, resulting in the layoff of approximately 1,700 employees.
The decision, confirmed on January 22, 2025, is part of a strategic shift back to a third-party delivery model that the company previously utilized before 2020.
This move will affect various facilities in the greater Montreal area, including one fulfillment center, two sorting centers, and three delivery stations.
Reasons for Closure
Amazon spokesperson Barbara Agrait stated that the closures are aimed at providing “even more savings to our customers over the long run.”
The company will revert to using local third-party companies for package deliveries, a model it had employed prior to its expansion in Quebec.
Despite this rationale, the announcement comes on the heels of recent unionization efforts at one of Amazon’s warehouses in Laval, where workers successfully formed a union in May 2024.
While Amazon has denied that the closures are related to these union activities, the timing has raised suspicions among labor advocates.
Impact on Workers
The layoffs will primarily impact permanent full-time employees, with an additional 250 temporary workers also affected as their contracts come to an end.
Affected employees will receive severance packages that include up to 14 weeks of pay and transitional benefits such as job placement resources.
The closures are set to unfold over the next two months, with specific timelines for each facility yet to be detailed.
Reactions
Quebec’s Premier François Legault expressed sadness over the decision and acknowledged the difficulties faced by the families impacted by the layoffs.
He emphasized that while he understands the situation’s gravity, it remains a private decision made by Amazon.
The Federation of National Trade Unions criticized the move as a “slap in the face” to Quebec workers, highlighting concerns about job security amid ongoing labor negotiations.
This closure marks a significant shift for Amazon in Quebec, where it had previously invested in expanding its logistics operations.
As the company transitions away from direct operations in this major Canadian market, it raises questions about its future strategy and commitment to labor relations in regions with strong union presence.
