Woodbridge Foam Layoffs 2026: What’s Happening & Severance Rights

Woodbridge Foam is reportedly eliminating dozens of jobs at its plant in Blenheim, Ont., a community east of Windsor. (CK News Today)

The Mississauga-based company claims the “short-term or indefinite” layoffs will begin in May 2026 and continue through December.

Currently, the Blenheim facility — which produces automotive seat cushioning, seat frame components, and interior soft trim — employs a total of 155 hourly and salaried workers.

This page explains:

• What’s happening with layoffs at Woodbridge Foam
• Whether a layoff at Woodbridge Foam is permanent
• How much severance non-unionized employees at Woodbridge Foam may be owed
• What to do before signing a severance offer

Is a Layoff at Woodbridge Foam Temporary or Permanent?

For non-unionized employees at Woodbridge Foam, a layoff is almost always treated as a termination without cause, even if the following language is used:

• “Restructuring”
• “Reorganization”
• “Transformation”
• “Temporary layoff”

Unless your employment contract explicitly allows for Woodbridge Foam to temporarily lay you off, the company can’t place you on indefinite layoff without terminating your employment — meaning they must provide full severance pay.

Severance Pay for Woodbridge Foam Staff

Non-unionized employees, including those at Woodbridge Foam, are often owed far more severance pay than what’s outlined in their initial offer.

Severance is based on common law entitlements, not just minimum standards. Factors include:

• Age
• Length of service
• Position and seniority
• Availability of comparable jobs

It’s not uncommon for Woodbridge Foam employees to be owed up to 24 months of compensation.

Severance may include:

• Base salary
• Continued benefits
• Bonus and incentive compensation
• Stock, equity, or RRSP contributions (where applicable)
• Vacation pay
• Other earned compensation

First offers often:

• Cover only minimum entitlements
• Exclude bonuses or incentives
• Impose short signing deadlines
• Undervalue long-service or senior employees

Severance Offers: Common Problems

Canadian employees affected by layoffs frequently report issues such as:

• Severance offers far below legal entitlements
• Missing or unclear compensation breakdowns
• Benefits cut off too early
• Bonuses excluded without justification
• “Temporary layoff” language used improperly
• Pressure to sign within 24–48 hours

Wrongful Dismissal and Woodbridge Foam Layoffs

A wrongful dismissal occurs when major employers, including Woodbridge Foam, fail to provide full severance required under common law.

You may have a claim if:

• Your severance offer is too low
• A termination clause isn’t enforceable
• You were pressured to accept your severance offer on the spot
• Bonuses or benefits were excluded from your severance package
• You were terminated while on medical, parental, or disability leave
• Woodbridge Foam labelled your termination a “temporary layoff” without contractual authority

Large-scale layoffs at Woodbridge Foam don’t reduce their legal obligations.

Laid Off at Woodbridge Foam? Next Steps

If you’ve been laid off at Woodbridge Foam:

1. Don’t sign your severance offer immediately
2. Gather your employment contract, bonus plans, and benefits information
3. Use the Severance Pay Calculator to double-check your entitlements
4. Keep records of your role, compensation, and length of service
5. Speak with an employment lawyer before agreeing to anything

Woodbridge Foam Layoffs: Frequently Asked Questions

How much severance can Woodbridge Foam employees receive?

Up to 24 months — depending on age, service, and position.

Are Woodbridge Foam layoffs permanent?

For non-unionized employees, yes. A layoff is typically a termination.

Does Woodbridge Foam have to include bonuses in severance?

Often yes — especially if bonuses were a regular part of compensation.

Can Woodbridge Foam terminate employees on leave?

This can raise serious wrongful dismissal and human rights issues.

Can employment lawyers represent unionized staff at Woodbridge Foam?

No. Unionized employees at Woodbridge Foam must go through their union.

Lost Your Job? Get Help Now

If Woodbridge Foam has laid you off, or offered a severance/buyout package, don’t do anything before seeking legal advice.

Samfiru Tumarkin LLP, one of Canada’s most reviewed employment law firms, has helped more than 50,000 Canadians secure the compensation they’re legally entitled to.

Disclaimer: The materials above are provided as general information about the rights of non-unionized employees in Canada. It is not specific to any one company and SHOULD NOT be read as suggesting any improper conduct on the part of any specific employer, or a relationship between Samfiru Tumarkin LLP and a specific employer.