Amazon Layoffs 2026: News, Restructuring & Severance Pay in Canada

As of May 2026, Amazon continues to downsize — trimming its “Selling Partner Services” team.

“We regularly review our [teams] to ensure we’re best set up to deliver on our goals. Following a recent review, we’ve made the difficult decision to eliminate a relatively small number of roles,” a spokesperson for the e-commerce giant told Business Insider.

“We don’t take decisions like this lightly, and we’re committed to supporting affected employees with transitional health care, a separation payment, and outsourced job placement services.”

The company is focused on integrating artificial intelligence (AI) into nearly every part of its business — from retail operations and customer service, to advertising and logistics.

If you’re a non-unionized worker or manager at Amazon in Canada, which is a provincially regulated employer, understanding these developments is the first step in ensuring your legal rights are protected during this period of restructuring.

Amazon Layoffs: A Timeline of Recent Job Cuts

• March 2026: Amazon has reportedly cut at least 100 “white-collar” jobs in its robotics division.
• Jan. 2026: Amazon eliminated approximately 16,000 corporate roles as part of a sweeping restructuring.

Your Rights as a Non-Unionized Employee

Whether your departure is labelled a “layoff,” “restructuring,” or a “voluntary package,” your legal rights are governed by Canadian common law.

How Severance Pay Works

For non-unionized staff and managers at Amazon, severance pay isn’t determined by a single internal policy.

Instead, it’s based on the unique circumstances of your situation:

• The 24-Month rule: Depending on your age, length of service, and the nature of your role, you may be entitled to up to 24 months of severance pay.
• Managerial complexity: For managers, severance must often account for bonuses, RSUs, and stock options.
• Provincially regulated status: Because Amazon is a provincially regulated employer, specific rules under a province’s employment legislation apply alongside common law standards.

Defining Wrongful Dismissal

A “wrongful dismissal” is a specific legal term. It occurs whenever an employer in Canada terminates a non-unionized worker without “just cause” but fails to provide the proper amount of severance pay.

This isn’t a reflection of the company’s intent, but rather a calculation of whether the package meets the high standards set by Canadian courts.

If an employment contract’s termination clause is unenforceable, or if a “temporary layoff” is implemented without a prior written agreement, an employee may have a claim for full severance.

Recommended Steps for Affected Amazon Staff in Canada

If you’ve been notified of job loss or offered a “voluntary departure” package at Amazon in Canada:

1. Don’t sign anything immediately: You’re legally entitled to a reasonable period to review any offer. Signing a release prematurely can waive your right to pursue full compensation.
2. Use the Severance Pay Calculator: Get an anonymous, instant estimate of your entitlements.
3. Check your compensation: Ensure your offer includes all variable pay, including bonuses and benefits.
4. Seek legal advice: An experienced employment lawyer can ensure that you receive fair compensation.

Amazon Layoffs: Frequently Asked Questions

Are layoffs at Amazon permanent?

For non-unionized employees, a layoff is typically treated as a permanent termination of employment requiring full severance.

Can a manager at Amazon negotiate a better deal?

Yes. Initial offers from large employers often focus on minimum standards rather than full common law entitlements.

Does Amazon have to include bonuses in severance?

Often yes — especially if bonuses were a regular part of compensation.

Lost Your Job? Get Help Now

Samfiru Tumarkin LLP has helped over 60,000 Canadians secure the compensation they’re owed, and has earned more than 3,000 5-star reviews across the country.

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.