Amazon to close its Quebec facilities, return to third-party delivery model

Amazon announced it will close all seven of its Quebec locations following a review of its operations that led to the decision to return to a third-party delivery model in the province.

“Following a recent review of our Quebec operations, we’ve seen that returning to a third-party delivery model supported by local small businesses, similar to what we had until 2020, will allow us to provide the same great service and even more savings to our customers over the long run,” Barbara Agrait, a spokesperson for Amazon, said in a statement. “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.”

As a result of the closures, approximately 1,700 regular employees will be affected, along with 250 temporary seasonal workers whose contracts will be honoured by Amazon.

Kristin Gable, senior manager of corporate communications in Canada with Amazon, said the company used the third-party business model in Quebec prior to opening locations in the province in 2020. She added that the change aligns with Amazon’s goal to provide better service, selection and savings to its customers.

“Amazon determined that it just made sense. It was in the best interest of our customers to go back to that model that we had until 2020,” Gable said. “The goal of this is not only to maintain the level of service that customers receive but even to continually improve it over the long term.”

Asked whether the recent unionization of Amazon warehouse employees in Quebec factored into the decision to shutter the seven operations, Gable said it did not.

“This was about returning to a model that we used successfully prior to 2020, that’s going to allow us to provide the same great service and savings to customers,” she said.

Gable said Amazon will work with more third-party logistics companies to ship items to customers.

She also stressed that Amazon would continue to support third-party sellers to maintain a high level of service.

“There are many third-party sellers in Canada and in Quebec who sell their products on Amazon.ca; that doesn’t change,” said Gable. “We will continue to work closely with third-party sellers in Quebec and elsewhere to make sure they’re getting their resources and the support they need to be successful when they sell their products in our store.”

Each of the seven facilities being closed are leased, and Amazon plans to work with landlords to determine the next steps for the properties.

“The facilities in Quebec are leased and will remain in use over the coming months as we wind down operations,” Agrait said. “As we complete this process, our team will work with relevant landlords – as they do any time we exit a leased facility – to determine what’s next for them.”

The sites will close progressively, with each shutting down on different dates. The entire process is expected to take about two months.