Amazon Layoffs in Canada: Employee Rights & Key Severance Facts

Amazon continues to scale back its staffing levels — eliminating approximately 84 roles in Seattle and Bellevue in December 2025. (The Seattle Times)

The update comes just weeks after the e-commerce giant 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 hasn’t 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)

If you’re laid off or receive a severance offer, don’t sign anything until you understand your full rights under Canadian employment law.

Severance Packages for Amazon Staff

In Canada, severance for non-unionized Amazon workers is based on common law, which looks at factors such as:

• Your length of service
• Your age
• Your position, seniority, and scope of responsibility
• The availability of comparable jobs in the market

Depending on these factors, Amazon employees in Canada can receive up to 24 months of severance pay under common law.

The company may present a “standard” package that:

• Offers only ESA/ESC minimums (far less than common law entitlements)
• Ignores RSUs, stock options, ESPP and long-term incentives
• Under-values commissions or variable compensation
• Gives a short deadline (e.g., 5–10 days) to sign
• Provides a lump sum or salary continuation with limited explanation

Having a severance package reviewed is often the difference between a few months of pay and potentially up to 24 months of total compensation.

Layoff Notices: Potential Issues

Common problems we see when employees in Canada are laid off include:

• Incorrect severance calculations that only consider ESA/ESC minimums
• Insufficient notice relative to your years of service and seniority
• Temporary layoff language used without a clear contractual right to do so
• Unclear handling of RSUs, stock options, ESPP and bonuses
• Short deadlines designed to pressure quick acceptance
• Incomplete breakdowns of how an employer arrived at the severance figure

Any of these issues can be a sign that your offer is below your legal entitlement under Canadian law.

Severance Offers: Common Red Flags

Be especially cautious if your severance package:

• Includes only a few weeks or a handful of months of pay after many years of service
• Doesn’t continue benefits for a reasonable period
• Leaves RSUs, stock options, ESPP or long-term incentives out of the calculation
• Doesn’t clearly explain how bonuses and commissions are treated
• Describes your termination as a “restructuring” or “realignment” — still ending your employment permanently
• Comes with a 24–72-hour deadline or other intense pressure to sign
• Asks you to sign away rights (including future claims) in exchange for basic amounts you are already owed

Wrongful Dismissal and Amazon Layoffs

A wrongful dismissal occurs when an employer like Amazon fails to provide the full severance pay required under common law after terminating a non-unionized employee without cause.

You may have a wrongful dismissal claim if:

• Your severance package is far lower than what similar employees receive in court decisions
• A termination clause in your employment contract is unenforceable under current Canadian case law
• You’re pressured to sign quickly with threats that the offer will “disappear”
• You’re let go during maternity, parental, disability, or medical leave
• The company labels the situation as a “temporary layoff” with no realistic recall or valid contractual basis
• Your employer refuses to recognize RSUs, bonuses, commissions or benefits in the severance calculation

Laid Off at Amazon? Next Steps

If Amazon has given you notice of termination or a severance offer:

1. Don’t sign anything right away. Signing waives your right to seek more severance later.
2. Collect all relevant documents:
   • Offer letter and employment contracts
   • Commission plans, bonus policies, and equity grant agreements (RSUs, options, ESPP)
   • Recent pay stubs and T4s
   • Any emails or memos about your role, performance, or restructuring
3. Use the Severance Pay Calculator to get a quick estimate of what you may be owed under Canadian law.
4. Take notes about your duties and responsibilities, especially if you held a specialized or senior role (e.g., enterprise account manager, senior solutions engineer, sales leader, etc.).
5. Speak with an employment lawyer who works for employees (not employers) to assess whether the offer you received reflects your full common law entitlement.

You generally have up to 2 years from the date of termination to pursue a legal claim. The deadline in your severance letter is often an internal company timeline, not a legal one.

Lost Your Job at Amazon? Get Help Now

If Amazon has laid you off, or if you’re concerned that upcoming restructuring might affect your role, talk to an employment lawyer before you sign anything.

Samfiru Tumarkin LLP has helped over 50,000 Canadians secure the compensation they’re owed, and has earned more than 3,000 five-star reviews across the country.

📞 Call us at 1-855-821-5900 or request a consultation online.

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.