SNDL Layoffs: Severance Pay & Employee Rights

SNDL Inc. confirmed on October 27, 2026, that it had eliminated more than 30% of the workforce at its Kelowna, British Columbia manufacturing facility. The layoffs took place during the third quarter of 2026 as the Canadian cannabis and liquor company restructured its manufacturing operations to reduce costs.

SNDL hasn’t disclosed the exact number of employees affected. The company is also reviewing its broader cannabis operations, which may lead to further operational changes.

Lost your job at SNDL? Whether you worked in manufacturing, administration or management, your severance package may be worth more than your first offer. Non-unionized employees in British Columbia can receive up to 24 months’ compensation, depending on their circumstances.

Latest SNDL Layoffs In Kelowna, BC

SNDL confirmed the Kelowna job cuts in its third-quarter financial results released on October 27, 2026.

According to SNDL’s official announcement:

• July–September 2026: SNDL reduced the workforce at its Kelowna manufacturing facility by more than 30%.
• October 27, 2026: The company publicly confirmed the layoffs and outlined plans to reduce manufacturing costs and other expenses.
• Fourth quarter of 2026: SNDL expects the cost savings from its restructuring to begin improving financial results.
• Further review: SNDL is considering additional changes to its cannabis operations, including possible asset sales and productivity improvements.

The restructuring follows a difficult quarter for SNDL’s cannabis manufacturing business. Revenue in that segment fell 27.7% compared with the same quarter in 2025.

The company is also moving away from unprofitable domestic dried flower products and focusing on higher-value categories.

For affected BC employees, the important question is whether their severance package reflects everything they’re owed.

How Much Severance Does SNDL Pay In British Columbia?

There is no single severance package that applies to every SNDL employee. What you’re owed depends on your age, years of service, position, compensation and employment contract.

Non-unionized employees in British Columbia can receive up to 24 months’ compensation. That’s often substantially more than the minimum amounts required under BC’s Employment Standards Act.

Your severance package may need to include:

• Regular wages or salary during your notice period.
• Bonuses and incentive compensation that form part of your earnings.
• Health, dental and other employment benefits.
• Other compensation covered by your employment arrangements.

Long-serving employees, specialized workers, supervisors and managers may be owed significantly more than their employer’s initial offer.

Get an initial estimate using our free Severance Pay Calculator.

Does SNDL Have To Pay Severance When It Restructures?

Yes. Restructuring a business doesn’t automatically eliminate an employer’s severance obligations.

If SNDL eliminates your position because of reduced production, cost-cutting or changes to its operations, you may be entitled to compensation.

The company doesn’t get to determine your full legal entitlement simply by offering a standard severance formula.

Your years of service, age, position and employment contract all matter.

Have your offer reviewed before signing a release.

What If SNDL Changes Your Job Instead Of Laying You Off?

SNDL is changing how its cannabis manufacturing business operates. Some employees may face changes to their duties, compensation, shifts or workplace location.

You don’t necessarily have to accept a major change to your employment.

A significant pay cut, demotion, relocation or substantial change to your responsibilities may amount to constructive dismissal.

Not every workplace change qualifies. Your employment contract and the circumstances matter.

Don’t resign or agree to major changes without understanding your rights first.

What If You Work At Value Buds, Spiritleaf Or Another SNDL Business?

SNDL operates several Canadian retail businesses, including Value Buds, Spiritleaf, Wine and Beyond, Liquor Depot and Ace Liquor.

The confirmed 30% workforce reduction concerns the Kelowna manufacturing facility, not SNDL’s entire retail network.

However, employees terminated individually or affected by a store closure may still have severance rights.

Your legal employer matters, particularly if you work at a franchised location. Severance obligations generally rest with the business that employs you, rather than automatically with SNDL’s parent company.

Non-unionized employees in Ontario, Alberta and BC may be entitled to substantially more than their employer’s first offer.

What Should You Do Before Signing An SNDL Severance Package?

1. Get everything in writing. Keep your termination letter, employment agreement, pay statements and proposed severance package.
2. Review your full compensation. Your severance may include bonuses, benefits and other earnings—not just regular wages.
3. Have your package checked. An employment lawyer can explain what you’re owed and whether there’s room to negotiate.

Having your severance reviewed doesn’t mean taking SNDL to court. We resolve the vast majority of severance disputes through negotiation.

Samfiru Tumarkin LLP represents non-unionized employees across British Columbia, Ontario and Alberta. Our employment lawyers help workers understand their rights and get the compensation they’re owed.

Before you sign, always check first.

SNDL Layoffs And Severance: Common Questions

How Many Employees Did SNDL Lay Off In Kelowna?

SNDL confirmed that it reduced the workforce at its Kelowna manufacturing facility by more than 30% during the third quarter of 2026. The company hasn’t disclosed the exact number of employees affected.

Can SNDL Employees Get 24 Months’ Severance?

Yes. Non-unionized employees in BC, Ontario and Alberta can receive up to 24 months’ compensation, depending on their age, years of service, position and other circumstances.

Does SNDL Have To Pay Severance If It Reduces Production?

Reducing production or restructuring a facility doesn’t automatically remove an employer’s termination obligations. Affected employees may be owed more than their initial offer.

Are Value Buds And Spiritleaf Employees Affected By The Layoffs?

The confirmed workforce reduction concerns SNDL’s Kelowna manufacturing facility. The company hasn’t announced a comparable workforce reduction across its retail network.

Can I Negotiate My SNDL Severance Package?

Yes. Your first offer isn’t necessarily everything you’re owed. Have your package reviewed before signing a release.

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.