Employment Law

Ada Layoffs 2026: Toronto Job Cuts & Severance

A photo of a circuit board creating the shape of a human brain. (Photo: Steve Johnson / Unsplash)

Toronto AI company Ada reportedly laid off 25 employees in late October 2026, following cuts to half its marketing team in July. The job losses came shortly before Ada announced plans to merge with U.S.-based customer communications company Dialpad on November 4.

The Globe and Mail reported the layoffs, citing sources familiar with the company. Ada hasn’t publicly confirmed the total number of Canadian employees affected.

Laid off by Ada Support? Your first severance offer isn’t necessarily everything you’re owed. Non-unionized Ontario employees can receive up to 24 months’ compensation when terminated without cause.

💡 Before You Sign, Always Check First. Whether Ada has terminated your employment or offered new terms following the Dialpad merger, have us review your situation before you sign.


Latest Ada Layoffs And Dialpad Merger

Ada has undergone several rounds of restructuring as it shifts toward AI-powered customer service technology.

  • November 4, 2026: Ada and Dialpad officially announced plans to combine. The transaction was expected to close around November 12.
  • Late October 2026: Ada reportedly laid off 25 employees, according to The Globe and Mail.
  • July 2026: The company reportedly eliminated half its marketing team as it changed how it develops products and operates its business.
  • September 2022: Ada eliminated 78 positions, representing 16% of its workforce at the time.

The latest layoffs were detailed in The Globe and Mail’s reporting on Ada’s merger. The companies confirmed their plans in a November 4 announcement.

Dialpad says it plans to retain the vast majority of Ada’s employees and maintain its Canadian operations. No additional merger-related layoffs have been confirmed.


Were Ada Employees Laid Off Because Of AI?

Ada develops AI agents that help businesses automate customer service. But the company has also been changing how its own employees work.

Two employees affected by the July layoffs told The Globe and Mail that they believed Ada’s increased use of AI tools contributed to their job losses.

Those accounts haven’t been established as the company’s official explanation for the layoffs.

Regardless of whether a position is eliminated through AI, restructuring or cost-cutting, an employer still owes proper severance when it terminates an employee without cause.


How Much Severance Does Ada Owe Ontario Employees?

Non-unionized Ada employees terminated without cause in Ontario can receive up to 24 months’ compensation.

What you’re owed is based on your age, years of service, position, compensation and employment contract—not simply Ada’s standard severance package.

That includes employees in marketing, sales, engineering, product development, customer success and management.

Your package should also account for the compensation you’re owed beyond salary, including bonuses, benefits and equity awards.

Use our free Severance Pay Calculator to get an initial estimate.


What Happens To Ada Employees After The Dialpad Merger?

A merger doesn’t automatically mean employees are terminated or owed severance. But it also doesn’t give the new company the right to disregard existing employment agreements.

If your employment continues, pay attention to changes involving:

  • Compensation: Your salary, bonuses and other incentives.
  • Responsibilities: Major changes to your position, reporting structure or seniority.
  • Employment agreements: Requests to sign a new contract or accept different termination terms.
  • Equity: What happens to stock options, shares or other outstanding awards.

A significant pay cut, demotion or major change to your responsibilities can amount to constructive dismissal, allowing you to pursue severance.

Don’t resign or sign a replacement employment agreement before understanding what you’re giving up.


What Happens To Ada Stock Options And Equity?

If your compensation includes Ada stock options or other equity awards, the merger makes reviewing those agreements especially important.

Before signing a severance package or new employment agreement, check your vesting schedule, exercise deadlines and any provisions dealing with a sale or merger.

The reported value of the Dialpad deal doesn’t automatically determine what individual employees receive for their equity.

Lost bonuses and equity compensation can also form part of a severance claim following termination without cause.

Don’t assess your severance offer by salary alone.


What Should Ada Employees Do Before Signing?

  1. Keep your documents. Save your termination letter, employment contract, severance offer and equity agreements.
  2. Review any changes. Check what happens to your salary, position, years of service, bonuses and stock awards.
  3. Have your package reviewed. Understand what you’re owed before accepting an offer or signing a release.

⚠️ A Signing Deadline Doesn’t End Your Rights. Ada might give you a deadline to accept its severance offer, but that isn’t your legal deadline to pursue compensation. Signing a binding release typically prevents you from seeking more. Before you sign, always check first.

Having your severance reviewed doesn’t mean taking Ada or Dialpad to court. We resolve the vast majority of severance disputes through negotiation.

Samfiru Tumarkin LLP represents non-unionized employees in Ontario, Alberta and British Columbia. Our employment lawyers help technology professionals, marketing employees, managers and other workers get what they’re owed.


Ada Layoffs And Severance: Common Questions

How Many Ada Employees Were Laid Off In 2026?

The Globe and Mail reported that Ada laid off 25 employees in late October and eliminated half its marketing team in July. The company hasn’t publicly confirmed a total for those rounds.

Is Ada Merging With Dialpad?

Yes. The companies announced their combination on November 4, 2026, with closing expected around November 12. Dialpad says it plans to retain the vast majority of Ada’s employees.

Can Ada Employees Receive 24 Months’ Severance?

Yes. Non-unionized Ontario employees terminated without cause can receive up to 24 months’ compensation, based on their circumstances and employment agreement.

Does Ada Have To Pay Severance If AI Eliminates My Job?

Yes. Replacing positions with AI doesn’t eliminate an employer’s severance obligations when employees are terminated without cause.

Does The Dialpad Merger Mean I Have To Sign A New Employment Contract?

Not automatically. Before signing a new agreement, have its terms reviewed to protect your years of service, compensation and termination rights.

Laid Off By Ada? Get What You’re Owed.

Your first severance offer may not be enough. Tell us what happened, and we’ll help you understand your rights before you sign.

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.

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