Amazon Abandons Quebec Market, Cuts 1,700 Jobs

Amazon.com Inc (Nasdaq: AMZN) will withdraw entirely from Quebec, shutting down its warehouse network in an unprecedented retreat that affects 1,700 workers, the e-commerce giant announced Wednesday.

The company will dismantle its two million square feet of operations across seven facilities, abandoning a market of 4.5 million people in the Montreal metropolitan area – a population larger than greater Seattle, Amazon’s home base.

The decision comes just eight months after workers at Amazon’s Laval facility secured the company’s first union foothold in Canada. While spokesperson Barbara Agrait said Amazon would maintain service through neighboring provinces’ facilities, industry expert Marc Wulfraat viewed the move as a clear anti-union signal.

“The message couldn’t be clearer – they’re cutting off an entire province to prevent unionization from spreading,” Wulfraat said. Quebec’s 40% unionization rate stands as Canada’s highest, dwarfing the US rate.

The withdrawal marks a striking reversal of Amazon’s core strategy of positioning warehouses near population centers. The company had aggressively expanded its Quebec presence since 2020, opening multiple delivery stations and sorting centers.

Canadian officials swiftly condemned the move. “This approach has no place in Canadian business,” Innovation Minister François-Philippe Champagne wrote on X.

Union leaders discovered the closure plans through a lawyer’s email Wednesday morning. “Amazon has fought our organizing efforts for three years. Now they’re punishing an entire province,” said Caroline Senneville, president of the Confédération des Syndicats Nationaux.

Quebec Premier François Legault downplayed the significance, calling it a standard business decision and pledging government support for displaced workers.

The company will transition to its pre-2020 model, routing deliveries through facilities outside Quebec using third-party carriers.


Information for this story was found via the sources and companies mentioned. The author has no securities or affiliations related to the organizations discussed. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.

Video Articles

Why the Market May Be Misreading Iran | David Woo

Why US Fertilizer Supply Could Matter a Lot More Now | Pat Varas – Sage Potash

Roscan Gold: Mali Discount Hits Kandiole PEA

Recommended

First Phosphate Gains Danish State Support With LOI For EUR 170 Million Credit Guarantee

Denarius Metals Offers To Acquire Emerita At Just $0.30 A Share

Related News

Amazon To Launch New Credit Card Venture with Banco Bradesco in Brazil

Amazon (Nasdaq: AMZN) is set to introduce a new credit card venture in Brazil, aligning...

Wednesday, August 9, 2023, 06:15:00 AM

Quebec Minimum Payment Law Linked To Higher Credit Card Delinquency

A recent study by researchers from the Bank of Canada and Rice University has revealed...

Wednesday, July 17, 2024, 04:17:00 PM

Worker Protections Under Siege As Amazon, SpaceX Take Labor Board To Court

As the National Labor Relations Board (NLRB) faces escalating scrutiny from corporate giants SpaceX and...

Tuesday, November 19, 2024, 12:09:00 PM

Amazon to Acquire AI Chipmaker Perceive for $80 Million

Amazon (Nasdaq: AMZN) has announced plans to acquire Perceive Corp, an AI chipmaker and model...

Wednesday, August 21, 2024, 12:29:54 PM

Amazon Care No More: Tech Giant Is Shutting Down The Health Service By End Of Year

Amazon.com, Inc. (Nasdaq: AMZN) is closing the doors of its roughly three-year old healthcare service...

Thursday, August 25, 2022, 10:52:00 AM