Amazon considering major reduction to managerial workforce in 2025

What’s happening at Amazon?

Thousands of managerial roles could be on the chopping block at Amazon.

In a recent report, Morgan Stanley claimed that the tech giant is able to eliminate nearly 14,000 managers — saving it roughly $3 billion next year.

While Amazon hasn’t disclosed any plans to reduce its managerial workforce, the company has reportedly taken note of the increased number of management positions and emphasized the need to reassess team structures.

SEE ALSO
• Hundreds of jobs in Amazon’s cloud computing unit being axed
• Amazon’s Twitch cutting 500 roles to ‘rightsize’ the business
• Ongoing Flexport layoffs target leadership, fulfillment teams

If Amazon does decide to trim its managerial headcount, here’s what non-unionized employees in Canada need to keep in mind.

Termination agreements for Amazon Canada staff

In Canada, non-unionized employees at Amazon are owed full severance pay when they lose their jobs due to downsizing, corporate restructuring, or the closure of the business.

This applies to individuals working full-time, part-time, or hourly in Ontario, Alberta, and B.C. In some cases, this can also apply to independent contractors.

Severance is the compensation provided to non-unionized workers in Canada by their employer when they are terminated without cause.

It can be as much as 24 months’ pay — depending on a variety of factors.

WATCH: Employment lawyer Lior Samfiru explains why you are still owed severance if you have been downsized on an episode of the Employment Law Show.

Severance offers and deadlines

Before accepting a severance offer, double-check the amount using our firm’s free Severance Pay Calculator. It has helped millions of Canadians determine their entitlements.

In addition to your salary, make sure to factor in any other elements of your compensation (i.e. bonuses, commission, etc.).

If your employer’s offer falls short of what our Severance Pay Calculator says you are owed, it’s very likely that you have been wrongfully dismissed and should contact an experienced employment lawyer at Samfiru Tumarkin LLP.

Non-unionized employees in Canada have up to two years from the date of their dismissal to pursue proper severance pay. 

An employer’s deadline to sign back a severance offer is not legally enforceable or binding.

LEARN MORE
• Severance pay for provincially regulated employees
• Rights to severance during mass layoffs
• Severance entitlements in a recession

No shortage of major layoffs

The potential for another workforce reduction at Amazon comes amid a flurry of job cuts in 2024.

Big names, including Loblaw, Ricoh, ApplyBoard, Qualcomm, and IBM, have pulled out the axe as they continue to navigate challenging economic conditions.

SEE ALSO
• Air Transat considering job cuts amid financial turbulence 
• Atlantic Music Group cuts 6-7% of staff, part of restructuring
• Where are layoffs happening in Canada?

Lost your job? Talk to an employment lawyer

If you have been fired or let go for any reason, contact the experienced employment law team at Samfiru Tumarkin LLP.

Our lawyers in Ontario, Alberta, and B.C. have successfully represented tens of thousands of non-unionized individuals.

In addition to severance package negotiations, we can assist you on a broad range of employment matters, including:

If you are a non-unionized employee who needs help with a workplace issue, contact us or call 1-855-821-5900 to get the advice you need and the compensation you deserve.

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.