Trade News

Amazon’s Quebec Exit Results in Significant Layoffs and Opens Logistics Opportunities

Written by Cole Marketing | Jan 31, 2025 3:00:00 PM

With the right investments in technology, workforce development, and operational expansion, Quebec’s logistics sector could become stronger and more self-sufficient, no longer dependent on a single dominant player.

Amazon’s sudden withdrawal from Quebec has sent shockwaves through the province’s economy. With the elimination of approximately 1,700 full-time and 250 temporary jobs, it is set to disrupt the e-commerce landscape.

The move raises serious concerns for workers, landlords, and policymakers, but it also presents logistics opportunities for Canadian businesses.

As Amazon exits, the demand for alternative warehousing, last-mile delivery services, and supply chain solutions will surge. Quebec’s logistics providers now have the chance to step in to fill the gap left by the e-commerce giant.

The question now is whether Canada’s logistics infrastructure can absorb the impact of Amazon’s departure and meet the existing demand.

Amazon’s savings and efficiency strategy

Amazon's decision to close all seven of its fulfilment centers in Quebec reflects a shift in its operational strategy. The company will instead use third-party delivery services, which it says offer cost savings and increased efficiency.

Amazon spokesperson Barbara Agrait said, “Following a recent review of our Quebec operations, we’ve seen that returning to a third-party delivery model… will allow us to provide even more savings to our customers.” 

Responses to Amazon’s decision

The announcement has sparked criticism from government officials, labour unions, and workers.

Canadian Minister of Innovation, Science, and Industry, François-Philippe Champagne, publicly criticized Amazon’s handling of the situation, stating, “This is not the way business is done in Canada.”

He has since reached out to Amazon’s Canadian leadership for discussions on mitigating the impact of the closures.

Meanwhile, the Confédération des Syndicats Nationaux (CSN), which represents workers at Amazon’s Laval warehouse, has condemned the move, claiming it is a calculated effort to curb labour organization efforts.

“There is no doubt that the closings announced today are part of an anti-union campaign against CSN and Amazon employees,” said CSN President Caroline Senneville. She further argued that Amazon’s decision violates Quebec’s labour laws, vowing to challenge the closures through legal and advocacy channels. 

Amazon, however, denies that unionization played a role in its decision.

“This decision wasn’t made lightly, and we’re offering impacted employees a package that includes up to 14 weeks’ pay after facilities close and transitional benefits, like job placement resources,” Agrait said.

Logistics opportunities for Canadian businesses

Amazon’s exit from Quebec is a double-edged sword. While it represents a significant economic shift, it also provides logistics opportunities for Canadian companies.

It will allow local companies to expand, especially since e-commerce businesses and retailers need new logistics partners for warehousing, fulfilment, and last-mile delivery.

Local logistics firms are already preparing to seize this opportunity. “In the end, it’s going to be an opportunity for logistics in Quebec,” said Martin Ball, President and CEO of WIPTEC, a fulfillment provider. Companies like WIPTEC are positioning themselves as alternatives for businesses that previously relied on Amazon’s infrastructure.

Intelcom, a Montreal-based delivery and sorting company that has worked with Amazon since 2015, is also expected to play a bigger role in Quebec’s logistics landscape.

“We have a long-standing relationship with [Amazon], and we will continue to work closely to balance their delivery needs in Quebec,” the company stated. With 95 sorting stations across Canada, Intelcom has already begun hiring to accommodate the expected surge in demand.

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