Employment Law

Laid off or facing layoffs in Canada? Your 2025 legal guide

Company layoffs in 2022, canada layoffs, layoffs in canada, 2022 layoffs

Laid off from your job, or worried about upcoming layoffs in Canada? You’re not alone.

Every years, thousands of Canadians are impacted by layoffs — sometimes temporary, often permanent.

Whether you’ve already been laid off or are bracing for potential job loss, it’s critical to understand your legal rights, including severance pay, notice, and Employment Insurance (EI).

At Samfiru Tumarkin LLP, we’ve helped more than 50,000 non-unionized employees across Ontario, Alberta, and B.C. secure compensation after being laid off or terminated without cause — even when their employer claimed otherwise.

This 2025 guide to layoffs in Canada explains your legal options, common employer tactics, and what to do immediately if you’ve been laid off — plus recent layoff trends and job cut announcements.

ℹ️ List of Layoffs: Jump to a full list of major layoffs across Canada this year.


What is a layoff in Canada?

In Canada, a layoff occurs when your employer suspends or ends your employment due to reasons like lack of work, restructuring, or financial downturns.

There are two main types of layoffs:

🔎 Important: Temporary layoffs aren’t legal unless your employment contract specifically allows for it. If there’s no such agreement, a layoff may be considered a constructive dismissal, and you could be owed full severance pay.


Types of layoffs in Canada

Type of layoff Definition Legal implications
Temporary layoff A pause in employment with potential recall May be legal only if allowed in your contract or past accepted practice
Permanent layoff End of employment with no recall plans Treated as termination without cause – severance pay likely owed
Constructive dismissal When a temporary layoff or big job change happens Treated as a termination without cause, resulting in full compensation

Common reasons for layoffs in Canada

Companies lay off employees for many reasons.

Some of the most common include:

  • Restructuring or downsizing
  • Mergers or acquisitions
  • Technological changes (automation or AI)
  • Outsourcing or offshoring jobs
  • Cost-cutting during financial downturns
  • Global events and trade policies

📝 Example: Recent U.S. tariffs on Canadian goods are triggering job cuts across manufacturing and other industries. Learn how the Trump tariffs are causing layoffs here.


Your rights if you’re laid off in Canada

If you’ve been laid off, you may be entitled to:

  • Severance pay
  • Notice of termination or pay in lieu of notice
  • Continued benefits (in some cases)
  • Employment Insurance (EI) benefit

⚠️ Important: Employers often try to minimize severance offers. Get legal advice before you sign anything, even if there is a strict deadline.


Employer obligations during a layoff

By law, Canadian employers must:

  • Provide notice of termination, full severance pay, or a combination of both
  • Treat employees fairly and avoid discrimination and human rights violations
  • Maintain proper records of the layoff notice and reasons
  • Follow government legislation and laws

Severance pay after a layoff

If you’ve been laid off, you are likely owed severance pay. How much severance? Factors include:

  • Your age
  • Length of service
  • Position
  • Salary, compensation, bonuses, and commission
  • Availability of similar employment

In Canada, severance packages can be up to 24 months’ pay – even if your employer suggests otherwise. A wrongful dismissal in Canada happens when your employer doesn’t give you enough severance, which happens quite often.

📱 Crunch The Numbers: Use our Severance Pay Calculator!


What to do if you’re laid off in Canada

Follow these steps to protect your rights:

  1. Stay calm. Don’t sign anything immediately.
  2. Request a written termination letter or email outlining severance and benefits.
  3. Review your employment contract for layoff and termination clauses.
  4. Use our Severance Pay Calculator to check if your offer is fair.
  5. Consult an employment lawyer at Samfiru Tumarkin LLP before agreeing to severance – Contact us today!

⛔ Unionized? You must consult your union representative regarding termination, severance pay, and other workplace issues. These matters are governed by your collective bargaining agreement. By law, employment lawyers can’t represent unionized employees with these issues.


Monthly layoff updates in Canada

Stay informed on the latest job cuts happening in Canada. Our team tracks layoffs across all industries, regions, and companies – see the dropdown sections below.

2025

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2023

January

  • Salesforce: The enterprise software maker announced that it will cut approximately 10 per cent of its workforce and close some offices. In an email to staff on Jan. 4, the company said it “hired too many people” as it grapples with challenging economic conditions. Salesforce didn’t disclose how many Canadian employees are affected by the latest reduction.
  • Amazon: The e-commerce giant announced that it’s trimming its headcount further after laying off thousands of workers in November. The company is set to eliminate more than 18,000 jobs as it grapples with challenging economic conditions. Amazon said the cuts will primarily affect its Amazon Stores as well as its People, Experience, and Technology (PXT) organizations.
  • Cloud Software Group: The Citrix-TIBCO parent company announced that it’s laying off roughly 15 per cent of its workforce after conducting a “rigorous planning process.” Samfiru Tumarkin LLP has been contacted by several Canadian employees who claim that they were let go. Our employment lawyers are following up with affected staff to better understand the situation.
  • Thinkific: The tech company is cutting 76 jobs as it focuses on returning to profitability by the end of the year. Most of Thinkific’s affected staff left on Jan. 15. Basic system access was available to all departing workers until the end of the day on Jan. 13.
  • Microsoft: The tech giant is cutting 10,000 jobs, or less than five per cent of its total workforce, in a bid to reduce costs. News outlets, including The Verge, claim layoffs at Microsoft should be completed by March. It remains unclear how many Canadian employees are affected by the latest reduction.
  • Benevity: The Canadian tech firm is cutting 137 jobs, or 14 per cent of its workforce, as it grapples with a slowdown in demand. In a note to employees on Jan. 18, CEO Kelly Schmitt said the company is “overbuilt for current market conditions.” Benevity added that it will provide affected staff with “generous severance” and support them in a variety of ways during the transition.
  • Lightspeed: The Canadian e-commerce company is eliminating 300 jobs, or 10 per cent of its “headcount-related operating expenditures”, as it streamlines its operations. Lightspeed said in a news release that half of the cuts are “coming from management layers.”
  • Clutch: The online vehicle retailer is cutting 148 employees, or approximately 65 per cent of its workforce, as it refocuses its business in Ontario and the Maritimes. Clutch said challenging market conditions are affecting the closure of a $95 million Series C funding round.
  • Hootsuite: The Canadian social media company is eliminating 70 jobs, or seven per cent of its workforce, in an effort to position the business for the long term. The layoffs come as Hootsuite announced that it has chosen Irina Novoselsky, who recently headed Career Builder Inc., to succeed Tom Keiser as the company’s CEO.
  • Clearco: The e-commerce investing company is laying off approximately 25 per cent of its workforce as it continues to monitor market conditions. Co-founder and Dragon’s Den star Michele Romanow confirmed that she is stepping down as CEO. Andrew Curtis has been chosen to succeed Romanow as she becomes co-executive chairman.
  • Alphabet: The parent company of Google and YouTube is eliminating approximately 12,000 jobs, or six per cent of its workforce, as the tech giant grapples with a slowdown in growth. A Google Canada spokesperson said impacted staff in the country have been notified, but refused to comment on the exact number of workers affected by the reduction.
  • Hudson’s Bay: The retail giant is cutting approximately 250 jobs, or two per cent of its total workforce, in an effort to increase efficiencies within its operations. The reduction will largely affect Canadians in corporate roles as well as the company’s online and brick-and-mortar operations.
  • Best Buy: The consumer electronics retailer is cutting approximately 700 jobs, or less than one per cent of its workforce, as the company grapples with slowing sales following a spike in demand during the COVID-19 pandemic. Samfiru Tumarkin LLP has been contacted by several employees who claim that they have been laid off by Best Buy Canada.
  • Adidas: The athletic wear giant is laying off as much as 50% of its corporate staff in Canada as it merges operations with its U.S. office.
  • Torstar: The Canadian media giant confirmed to The Globe and Mail that it’s outsourcing more of its printing operations to Transcontinental Inc. and selling its remaining Toronto facility. Samfiru Tumarkin LLP has been contacted by several employees at Metroland Media Group, one of Torstar’s subsidiaries, who claim that they have been laid off.

February

  • VerticalScope: The Canadian tech company is eliminating approximately 60 jobs, or 22 per cent of its total workforce. VerticalScope said the reduction will ensure that the business is in the best position to “navigate the current economic environment.” It remains unclear how many Canadian employees are affected by the latest round of cuts.
  • Dell Technologies: The tech giant is cutting approximately 6,650 jobs, or five per cent of its global workforce, as the company continues to navigate a challenging global economic environment. It remains unclear how many Canadian employees are affected by the reduction.
  • VinFast: The electric vehicle maker is reportedly cutting around 80 jobs in Canada and the U.S. as the company restructures its operations in North America. While it remains unclear how many Canadian employees are affected by the latest reduction, one worker in Kitchener, Ontario confirmed on LinkedIn that they have been let go by VinFast.
  • Zoom: The video conferencing company plans to cut around 1,300 employees, or 15% of its workforce, as per an article by CEO Eric Yuan posted to the company’s website. Yuan’s note suggests that layoffs will impact workers in Canada.
  • Canopy Growth: CEO David Klein announced another round of layoffs that will affect 800 employees and result in the closure and consolidation of numerous facilities in Canada.

March

  • Meta: The parent company of Facebook, Instagram, and WhatsApp announced that it plans to eliminate approximately 10,000 jobs and close around 5,000 additional open roles. The fresh round of job cuts comes after CEO Mark Zuckerberg claimed that 2023 was going to be Meta’s “Year of Efficiency.” It remains unclear how many Canadian employees are affected by the latest round of cuts.
  • Amazon: The e-commerce giant confirmed that it’s laying off around 9,000 employees as it continues to streamline its operations. Amazon said the cuts will mostly affect its AWS, PXT, Advertising, and Twitch teams. The company is aiming to finalize the impacted positions before the end of April.
  • Accenture: The consulting giant plans to eliminate around 19,000 jobs, or 2.5 per cent of its workforce, over the next 18 months in a bid to reduce costs. Accenture didn’t disclose how many Canadian workers are affected by the latest round of cuts.
  • Electronic Arts: The video game giant is cutting approximately 800 jobs, or six per cent of its workforce, as part of a company-wide restructuring. It remains unclear how many Canadian employees are affected by the latest round of cuts. EA expects the actions associated with its restructuring plan to be “substantially complete” by the end of September.
  • McDonald’s: The fast food giant has temporarily closed its U.S. offices and asked corporate employees to work remotely in advance of a round of layoffs that may impact workers internationally. A memo to staff reportedly said the cuts will help McDonald’s enhance its speed, efficiency, and innovation.

April

May

June

July

  • Microsoft: The tech giant is cutting 276 jobs in its home state of Washington. However, several Canadian workers reached out to Samfiru Tumarkin LLP — claiming that they were also let go.
  • Haleon: The consumer healthcare company is reportedly planning to eliminate hundreds of jobs in the U.K. and potentially thousands of roles worldwide.
  • Amazon: The e-commerce giant has reportedly eliminated approximately 80 jobs in its pharmacy division. It remains unclear if any Canadian employees were affected.
  • Biogen: The biotech company is cutting approximately 1,000 jobs, or 11 per cent of its workforce, to save costs as it launches a new Alzheimer’s drug.
  • CD Projekt Red: The video game developer is eliminating approximately 100 jobs, or nine per cent of its total workforce, claiming that it’s “overstaffed.”

August

September

October

November

December

  • Spotify: The music streaming platform is eliminating approximately 17 per cent of its workforce, or 1,500 jobs, in an effort to “rightsize our costs.”
  • CBC: The public broadcaster is cutting 600 jobs and some programming due to a $125 million budget gap.
  • Twilio: The software provider is laying off approximately five per cent of its workforce, or 300 jobs, as it restructures certain parts of its business.
  • Nike: Reports and social media posts claim that the sportswear giant quietly laid off an undisclosed number of employees over the past several weeks.
  • Hasbro: The toy maker is eliminating nearly 20 per cent of its workforce, or 1,100 jobs, as it grapples with an ongoing slump in toy sales.
  • Etsy: The e-commerce giant is eliminating approximately 225 jobs, or 11 per cent of its workforce, as it restructures its business.
  • Cruise: The self-driving arm of General Motors is cutting 24 per cent of its workforce, or approximately 900 jobs, as it restructures its business.
  • Bolt: The one-click checkout company slashed 29 per cent of its workforce in an effort to get to “an operating model optimized for sustainable growth and efficiency.”
  • Nike: Employees at the sportswear giant are bracing for job cuts after the company announced a major restructuring charge in its latest earnings report.
  • Google: A report claims that the tech giant’s AI tools have made many jobs in its ad sales unit redundant, which could result in mass layoffs.
  • PwC Canada: The firm is reportedly undergoing a restructuring that includes laying off over 100 employees from its consulting division.

2022

Developments in 2022

The year 2022 began with a rise in COVID cases as a result of the highly contagious Omicron variant. The fifth wave of the pandemic was the last straw for many Canadian businesses that struggled to get back on their feet. This surge led to a drop in Canada’s employment levels: 200,000 jobs were lost in January alone.

Slowly, the job market across Canada began to open up as the nation began to recover from the Omicron surge. The country saw consecutive growth in the employment rate during February and March, which eventually steadied in April.

According to Statistics Canada, the nation’s unemployment rate hit a record-low of 5.1 per cent in May, the lowest rate since at least 1976.

Pandemic aside, many companies in Canada continue to face financial hardships, resulting in mass layoffs for their employees. These difficulties are being amplified by the rise in inflation and interest rates, the war in Ukraine, and the threat of a global recession. Layoffs in the tech industry began ramping up towards the end of the year.

If you are a non-unionized employee in Ontario, Alberta or B.C., and have questions about your employment rights and entitlements, don’t wait to find out the answers you need. Contact an employment lawyer at Samfiru Tumarkin LLP today.

January

  • Cineplex: The Canadian movie theatre chain announced they are laying off 5,000 part-time employees in Ontario. The company was forced to shut down theatre venues due to indoor capacity restrictions put in place by the Ontario government at the start of the year, to try and limit the spread of the coronavirus outbreak.
  • Proposify: Halifax based startup company for online proposal solutions lays off 25 per cent of its staff (amounting to 25 employees).

February

March

April

  • Canopy Growth: The company reveals plans that they are laying off or firing 243 workers. It is part of “a new cost reduction strategy to make cannabis cultivation more affordable” and to “uncover supply chain efficiencies” that will save the company as much as $150 million. Canadian layoffs are largely happening in Ontario.
  • Hexo Cannabis: The company is closing its Belleville facility and transitioning operations to other sites after facing financial losses. Hexo said approximately 230 workers will be affected by the closure. The cannabis company also commenced layoffs in 2021.
  • Novartis: The pharmaceutical company confirms that thousands of layoffs are likely to happen on a global scale in the coming months due to large scale restructuring and the merging of its pharma and oncology businesses
  • Legible: The Vancouver based tech firm announces plans to lay off over a third of its employees. This accounts for 23 members of its 60 person staff.

May

June

July

  • Shopify: The Ottawa-based e-commerce giant is laying off 10% of its global workforce after it said it misjudged the growth of e-commerce during the COVID-19 pandemic. Shopify said in a blog post that most of the staff impacted work in recruiting, support, and sales.
  • Clearco: The Toronto-based e-commerce investment platform is laying off 25 per cent of its workforce after claiming that it increased its headcount “too quickly in anticipation of continued economic growth.” 125 employees of Clearco’s 500-person team were affected by the cuts.

August

  • Unbounce: The Vancouver-based landing page platform is laying off 47 employees, or 20 per cent of its workforce, as part of a company-wide restructuring. The company did not disclose how many workers from Unbounce and LeadsRx were affected by the cuts.
  • Article: The Vancouver-based online furniture company is laying off 216 employees, or 17 per cent of its workforce, as demand for e-commerce continues to cool off. Article said that affected staff will receive severance, have their benefits extended, and will be able to keep their equipment (i.e. laptops).
  • Hootsuite: The Vancouver-based social media company is laying off 30 per cent of its workforce as part of a global restructuring. Hootsuite did not disclose the specific number of employees affected by the cuts.
  • West Fraser: The Canadian wood products company announced that it is reducing production by cutting a shift at three B.C. mills. Without the shift, 147 jobs are on the chopping block.
  • Wayfair: The online furniture and home decor retailer is laying off five per cent of its global workforce as demand for e-commerce continues to cool down. The company did not disclose how many employees in North America are affected by the cuts.
  • Ford: The North American automaker is laying off approximately 3,000 non-unionized workers in a bid to lower costs as it shifts its focus to electric vehicles. Around 120 jobs in Canada are expected to be affected by the cuts.
  • Q4: The Toronto-based investor-relations software maker and provider is laying off approximately 48 employees, or eight per cent of its workforce, in a bid to cut costs as Canadian tech companies grapple with a sector-wide downturn. The company said the restructuring is designed to focus the sales, marketing, and product teams on the most important areas of the business.
  • Mood and Flora Cannabis: Running out of product, both B.C.-based cannabis businesses are laying off staff as a strike by the British Columbia General Employees’ Union rages on. Mood Cannabis has cut 90 per cent of its workforce at two of its stores in Nanaimo. Flora Cannabis has temporarily laid off 30 employees.
  • Clearco: The Toronto-based e-commerce investment company is cutting 60 employees in the U.K. Ireland, Australia, and Germany as it hands off its international business. The reduction comes after Clearco laid off a quarter of its workforce in July.
  • Snap: The parent company of Snapchat is laying off approximately 1,300 employees, or 20 per cent of its workforce, as part of a company-wide restructuring. The Santa Monica-based social media giant did not disclose if staff members in Canada are affected by the cuts.
  • Shopify: The Ottawa-based e-commerce giant reportedly laid off an additional 70 workers as it continues to grapple with a sector-wide downturn. The reduction comes after the company laid off 10 per cent of its workforce in July.

September

  • Brose North America: The autoparts maker announced that it will lay off 300 workers at its London, Ontario facility by the end of 2023. In a statement, the company’s president said “cost priorities, parts shortages, lowered production volumes, and other market turbulence have made competitive manufacturing at our London location impossible.”
  • Napoleon: The fireplace, grill, and gas furnace manufacturer is laying off 80 full-time associates at its locations in Barrie, Ontario as pandemic demand cools off. The reduction comes after the manufacturer held a job fair last year to fill 100 positions on its assembly line in the city.
  • Meta: The tech giant is reportedly planning to trim its headcount as it looks to cut costs by at least 10 per cent over the next few months. While Meta isn’t using the term “layoffs”, executives say departments are being reorganized and affected staff have been given a certain amount of time to apply for other roles. The company didn’t disclose how many Canadian employees are impacted by the cuts.

October

  • Intel: The world’s largest semiconductor chip manufacturer reportedly intends to slash its staff by as much as 20 per cent in some divisions by late October. This will result in thousands of layoffs. Intel didn’t disclose how many Canadian employees could be affected by the reduction.
  • Microsoft: The tech giant confirmed to multiple news outlets that it’s laying off nearly 1,000 employees worldwide. The move comes a few months after the company cut less than one per cent of its workforce in July. Microsoft didn’t disclose how many Canadian workers will be affected by the latest round of layoffs.
  • RenoRun: The Montreal-based tech startup is laying off 210 employees, or 43 per cent of its workforce, in a bid to reduce costs. RenoRun’s CEO said the level of uncertainty in both the macroeconomic and the venture capital environment has required the company to plan for the worst and reduce expenses.

November

  • Hootsuite: The social media company is laying off five per cent of its workforce as part of a global restructuring. The reduction comes after Hootsuite cut 30 per cent of its staff in August.
  • Suncor Energy: The energy giant is reducing the size of its contractor workforce by 20 per cent in an effort to improve the safety and performance of its oilsands operations. During a conference call with analysts, Interim CEO Kris Smith said Suncor is on track to complete the cuts by the first half of 2023.
  • Twitter: New owner Elon Musk has begun laying off approximately 3,700 employees, or 50 per cent of the company’s workforce, in a bid to reduce costs. Unconfirmed reports suggest that a large number of Twitter Canada workers could be affected by the cuts.
  • Stripe: The online payments giant announced that it’s laying off 14 per cent of its workforce as it grapples with high operating costs. Most of the cuts will occur in the company’s recruiting division. In a memo to staff on Nov. 3, CEO Patrick Collison said Stripe “overhired for the world we’re in.” The company didn’t disclose how many Canadian workers could be affected.
  • Manulife: The insurer has reportedly laid off 50 employees in Canada as it moves away from property operations. In a statement, a spokesperson for the company said its Canadian property operations teams will move to Jones Lang LaSalle (JLL) in March 2023. JLL is a Chicago-based commercial real estate and property management firm.
  • DoorDash: The food delivery service is eliminating approximately 1,250 corporate jobs as it grapples with a slowdown in demand and high operating expenses. In a memo to staff, DoorDash warned that its operating expenses are on track to outgrow revenue. The company didn’t disclose how many Canadian employees will be affected by the cuts.
  • Canopy Growth: The licensed cannabis producer is laying off 55 employees as it restructures its operations in Canada. The reduction comes as the company appoints Dave Paterson as the new president of its Canadian operations. A spokesperson said the changes “reflect Canopy Growth’s resolute focus on achieving profitability in Canada.”

December

Frequently Asked Questions

Can I be laid off without notice in Canada?

No, your employer must provide notice, severance pay, or a proper combination of both.

Is a layoff the same as being fired in Canada?

Yes. A permanent layoff is the same as a termination without cause. You are no longer employed and may be entitled to severance pay.

Are temporary layoffs legal in Canada?

Only in limited cases. Your employer can place you on a temporary layoff if your contract allows it or you’ve accepted one before. Otherwise, it may be considered a constructive dismissal.

Can I get EI if I’ve been laid off?

Yes. Most laid-off employees qualify for Employment Insurance (EI), but payments usually begin after your severance period ends.

What is constructive dismissal during a layoff?

If you’re put on a temporary layoff or experience other significant changes to your job, it may be considered constructive dismissal – meaning your employer has effectively ended your job, and you’re owed severance.

Can my employer lay me off because of company financial problems?

Yes, but they still have to pay you full severance, even if the company is losing money.


How Samfiru Tumarkin LLP can help

We’ve helped over 50,000 non-unionized employees in Ontario, Alberta, and B.C. secure millions in compensation. If you’ve been laid off, we can help you:

  • Understand your severance rights
  • Negotiate a better severance package
  • File a legal claim for wrongful dismissal

Book a consultation today with Canada’s most reviewed law firm by calling 1-855-821-5900 or fill out our online form. Don’t settle for less than what you’re entitled to.

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