Amazon Layoffs Prompt Canada to Review Government Deals
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Canada’s industry minister said Amazon.com Inc.’s decision to shut down all warehouses in Quebec and cut close to 2,000 jobs would prompt the government to examine its current deals with the e-commerce and technology company.
“You will undoubtedly understand that such action calls for a review of the business relationship that exists between Amazon and the Government of Canada,” Francois-Philippe Champagne said in a letter to Amazon CEO Andy Jassy that was published on social media network X on Jan. 23. “It is not too late to reconsider your decision.”
The intervention came after Amazon announced plans to close all seven warehouses in the French-speaking province and use subcontractors instead. Some Quebec workers had unionized less than a year earlier. Amazon insisted the announcement was unrelated to the union effort.
Amazon.com Inc. ranks No. 1 on the Transport Topics Top 100 list of the largest logistics carriers in North America, No. 12 on the TT100 list of the largest private carriers and No. 1 on the Top 50 Global Freight list.
My letter to the CEO of Amazon.
This is not the way business is done in Canada. pic.twitter.com/ntCOVwlYmw — François-Philippe Champagne (FPC) 🇨🇦 (@FP_Champagne) January 24, 2025
Champagne also told reporters Jan. 24 that he had a phone call with Amazon’s Canadian head and that he was “disappointed” not to have been informed that there would be further layoffs. There will be 1,459 more lost cuts at delivery partners, according to Radio-Canada.
“I had to call myself, and not only did they not give me the whole story, I got half the story,” he said. “It’s totally unacceptable.”
Canadian agencies such as border services and Health Canada have signed many dozens of contracts with the Amazon Web Services cloud-computing business, according to a government database, with several worth more than C$10 million ($7 million) each.
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Amazon spokesman Steve Kelly said the company regularly holds discussions with Canadian officials, though for operational changes like this it generally informs affected employees first.
“We’re happy to discuss this matter further with Minister Champagne and other officials in Quebec and Canada,” he added.
Amazon has recently lobbied against a bill proposed by the Canadian government aimed at regulating artificial intelligence, warning it was too ambiguous and could stifle innovation.
