Amazon announced on Wednesday that it would be closing all of its warehouse and logistics operations in Quebec, resulting in the layoff of 1,700 employees. Despite recent investments in the province, including the opening of three delivery stations in 2021, the company cited the need to provide more savings to customers in the long run as the reason for the closures.
The decision comes after Amazon faced unionization efforts by about 230 warehouse workers in Laval, north of Montreal, who successfully unionized in May. The company challenged the unionization, leading to continued litigation even as the closures were announced. The Confédération des Syndicats Nationaux, a union representing the workers, expressed disappointment and accused Amazon of stifling their union drive since it began three years ago.
The closures in Quebec signal a departure from Amazon’s strategy of placing operations closer to customers to enable faster delivery and drive down costs. The move is seen as a way to prevent the spread of unionization efforts within the company.
While Quebec’s premier and labor minister emphasized the need to support local businesses in response to the closures, they also assured that affected workers would receive assistance in finding new jobs. The closures in Quebec are significant as Amazon has not abandoned operations in such a major population center in North America in years.