Amazon Layoffs Canada: What Employees Need to Know About Severance and Their Rights

On October 28, 2025, Amazon confirmed plans to cut approximately 14,000 corporate jobs worldwide as part of a global restructuring tied to its artificial intelligence (AI) expansion.

While Amazon has not released a country-specific breakdown, Canadian corporate and tech employees may be impacted as the company continues reducing management layers and reallocating resources toward AI and cloud infrastructure (CBC News).

Who Is Affected by Amazon’s Layoffs?

• Scope: The company initially targeted up to 30,000 corporate positions (Reuters), later revising that number to 14,000 confirmed cuts (CTV News).
• Departments: Roles within Human Resources (People Experience and Technology), devices, operations, and corporate administration have reportedly been impacted.
• Canadian footprint: Amazon employs over 25,000 people in Canada, including at corporate offices in Toronto and Vancouver, and dozens of fulfillment centres nationwide.

Why Amazon Is Cutting Jobs

According to CEO Andy Jassy, the layoffs are not primarily driven by financial pressures or AI itself, but rather by a need to strengthen company “culture” and streamline operations (Fortune).

He described the move as part of a broader effort to “remove layers” of management and operate “like the world’s largest startup.” (National Post).

Key contributing factors include:

• Rapid AI and automation investment across corporate teams.
• Efforts to reduce bureaucracy and management layers.
• A focus on maintaining agility while scaling AI and AWS growth.

How Many Jobs Could Be Affected in Canada?

Amazon has not confirmed Canadian-specific numbers, but the company’s corporate offices and tech divisions are part of its global restructuring.

Possible impact areas:

• Corporate and administrative roles (HR, finance, operations)
• Tech and data teams tied to Amazon Web Services (AWS)
• Management roles within fulfillment or logistics networks

Given Amazon’s significant presence in Toronto, Vancouver, and Calgary, it is likely that some Canadian roles are affected as part of global realignment.

Severance Rights for Amazon Employees in Canada

If you are a non-unionized Amazon employee in Canada who was let go or received a layoff notice, you may be entitled to up to 24 months of severance pay, depending on:

• Your length of service
• Age and position
• Availability of comparable jobs

Amazon has confirmed that affected workers will receive severance pay, outplacement services, and health benefits, but these packages often fall short of what Canadian law requires. That’s when it becomes a wrongful dismissal.

Don’t Sign Anything Without Legal Advice

Before you sign an offer or release, remember:

• Employers often offer less than full legal entitlement.
• Once signed, it’s final — you can’t negotiate later.
• Deadlines in termination letters are not legally binding.

Our team at Samfiru Tumarkin LLP has helped thousands of Canadians secure full severance pay, even after major layoffs like these.

AI and the Future of Work at Amazon

Amazon’s deep investment in AI-driven operations and cloud infrastructure marks a broader shift across the tech industry.

The company is investing billions in new data centres, fulfilment centres (in places like Elgin County) and AI tools to boost automation — but these changes are displacing thousands of workers globally.

This reflects a growing trend in corporate restructuring:

• Efficiency through automation
• Workforce reduction through technology adoption
• Cultural realignment under “startup-style” management

Key Takeaway

The October 2025 Amazon layoffs highlight how AI and corporate restructuring are reshaping the workforce — but your rights remain the same.

If you lost your job at Amazon, don’t accept a severance offer until you know what you’re legally owed.

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.