E-commerce giant Amazon (AMZN) is closing all of its warehouses in Quebec and laying off more than 1,700 people after workers in the province formed a union.
The Seattle-based company announced that it will cease operations over the next two months at seven sites in the province: one fulfillment centre, two sorting facilities, three delivery stations, and one extra large delivery station that is co-located within a sorting centre.
The decision to pull out of Quebec comes following the unionization of 200 employees last spring at Amazon’s DXT4 warehouse in Laval.
In all, 1,700 regular employees and 250 temporary-seasonal workers in Quebec will lose their jobs, said the company.
Going forward, Amazon plans to return to its third-party delivery model in the province, which will see it used small local businesses and contract drivers for package deliveries.
Amazon had fought the unionization effort in Quebec but lost its challenge against the workers’ attempt to form a union at the province’s labour tribunal last October.
Quebec Premier François Legault called the decision by Amazon to leave the province “regrettable” but added that it is “a private decision by a private company.”
Amazon’s stock has risen 50% over the last 12 months to trade at $235.01 U.S. per share.
