Employment Law

Prepac cutting 170+ jobs in Delta, production going to U.S.

Sparks fly as a piece of equipment cuts holes into silver chunks of metal. Manufacturing sector employees are entitled to severance pay.

What’s happening at Prepac?

Canadian furniture manufacturer Prepac is preparing to terminate over 170 jobs at its Delta, British Columbia facilities, according to a release by Unifor, which represents many of Prepac’s Canadian workers.

The company will cease its manufacturing operations in the region by March 14, 2025, and expects all affected workers to be fully severed by May 2025.

Prepac plans to shift its production entirely to its Whitsett, North Carolina plant.

The company cited “an altered economic environment” as the driving factor behind its decision.

Prepac’s move comes in response to tariffs on Canadian goods, which it claims have altered its competitiveness.

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Official statements and context

Unifor National President Lana Payne strongly criticized the decision.

  • “Our union has been warning about lost investment and production since Trump began his economic war on Canada and Canadian workers.”
  • “Prepac and its equity owners are using the tariffs as an excuse to redirect all their production to the US. It’s pure greed.”

Prepac was a locally owned Canadian company until 2019, when it was sold to Toronto-based TorQuest Partners, a private equity firm.

In 2020, Prepac expanded its Delta footprint by acquiring a fourth building, only to shift focus to the North Carolina facility, which opened in 2021.

🚨 KNOW YOUR RIGHTS! Check out our comprehensive blog on how U.S. tariffs could affect non-unionized employees in Canada. You can also use our free Pocket Employment Lawyer to get real-time insights.


Next steps for non-unionized Prepac employees

If you’re fired or let go from Prepac, understanding your legal rights is crucial.

Non-unionized employees in Canada are entitled to severance pay. The amount you’re owed is based on a variety of factors, including your role, tenure, age, and ability to find similar work.

SEE ALSO
Bankruptcy in Canada: Guide for employees
Employee rights when a company closes


WATCH: Employment lawyer Lior Samfiru delves into severance pay on an episode of the Employment Law Show.


Major employers slashing staff

Reports of a workforce reduction at Prepac come amid a flurry of job cuts in 2025.

Other big names, including MLSEDisneyTown of CochraneAutodeskMohawk CollegeJPMorganChevronValeMetaCanada PostWorkdayADMAmazonShopifyStripeBPMicrosoftHudson’s Bay, and Wayfair, have pulled out the axe as they navigate challenging economic conditions.

SEE ALSO
• ‘We lost our agility’: Estée Lauder planning to slash up to 7,000 jobs
• Canada’s immigration department slashing workforce by 25%
• Where are layoffs happening in Canada?


Lost your job? Contact us

If you’re fired or let go from Prepac for any reason, the experienced employment law team at Samfiru Tumarkin LLP can help.

Our lawyers in Ontario, Alberta, and British Columbia have helped tens of thousands of non-unionized individuals resolve their workplace issues.

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

⛔ Unionized Employees: 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 layers can’t represent unionized employees with these issues.

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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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