Amazon has continued a major corporate restructuring throughout 2025 and 2026, eliminating tens of thousands of roles globally, including a significant number of corporate, technology, and warehouse employees across Canada. If you have been affected by the Amazon job cuts, it is critical to understand that the initial severance package you are offered is likely far less than what you are legally owed under Canadian law.

The Quick Answer: On January 28, 2026, Amazon announced a major round of corporate layoffs affecting roughly 16,000 employees globally. In Canada, laid-off non-unionized Amazon employees are legally entitled to full common law severance pay, which can equal up to 24 months of compensation, depending on age, position, and years of service.

On This Page:

Timeline of Amazon Job Cuts (2025–2026)

To understand the scope of the restructuring, here is a timeline of the recent corporate and operational cuts at Amazon:

➡️ Tracking job losses across the country? View our master tracker for the latest Canada Layoffs.

Why is Amazon Laying Off Workers?

A frequently asked question is why one of the world’s most profitable companies is cutting so many jobs. The Amazon layoffs are being driven by three primary factors:

  • The AI Shift: Like many tech giants, Amazon is aggressively integrating artificial intelligence (AI) into its retail, customer service, and advertising operations, making certain manual and administrative roles redundant.
  • Post-Pandemic Correction: During the COVID-19 pandemic e-commerce boom, Amazon engaged in massive over-hiring. The current cuts are a prolonged “right-sizing” effort to match current consumer demand.
  • Cost Cutting in Cloud Computing: Growth in the highly lucrative AWS division has stabilized, prompting executives to trim the workforce and protect profit margins.

Amazon Severance Packages in Canada

If you are a non-unionized worker or manager at Amazon in Canada, you are a provincially regulated employee. This means your severance rights are governed by the laws of the province where you work.

However, in some cases, multi-national corporations may make the mistake of offering Canadian employees severance packages based on standard US company policies, or the bare minimums set by provincial employment standards.

Do not accept a bare-minimum offer. Under Canadian common law, your severance package must account for the Bardal Factors: your age, your length of service, your specific position, and the availability of similar work in the tech sector. Because the tech job market is currently saturated with laid-off workers, courts frequently award extended notice periods.

An adequate Amazon severance package should include:

  • Up to 24 months of base salary.
  • Your bonuses and variable compensation.
  • Continuation of health and dental benefits.
  • Vesting of RSUs (Restricted Stock Units) that would have vested during your legal notice period.

View Severance Rules by Province:

Ontario
Alberta
British Columbia

 

Red Flags in Your Severance Offer

Before you sign any release form provided by an employer, watch out for these common red flags designed to limit your legal rights:

  • Artificial Deadlines: Employers often give you 24 to 48 hours to sign a severance offer, claiming the offer will “expire.” This is a pressure tactic. You legally have up to two years to pursue a wrongful dismissal claim in Canada.
  • Failure to Address RSUs: If your offer letter does not compensate you for the Restricted Stock Units (RSUs) that would have vested during your legal common law notice period, you may be leaving substantial money on the table.
  • The “Standard Package” Myth: Employers may tell you that your severance offer is a “standard corporate package” that applies to everyone and can’t be negotiated. This is entirely false. Under Canadian law, severance is not a one-size-fits-all formula; it must be uniquely calculated based on your specific age, job title, and years of service.

📲 Severance Pay Calculator

Before signing any offer, find out what you may be owed based on your age, role, and tenure in less than two minutes. It is 100% anonymous.

Put Samfiru Tumarkin LLP in Your Corner

You do not have to fight a massive tech corporation on your own. If you have been swept up in the Amazon job cuts, the employment lawyers at Samfiru Tumarkin LLP have the experience to review your offer, identify where the company may fall short, and negotiate the maximum financial compensation you are legally owed.

As Canada’s most positively reviewed employment law firm, we have helped tens of thousands of employees tilt the playing field in their favour.

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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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