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Canada IN SHOCK As Amazon CLOSES Warehouses! THIS IS HUGE!

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0:00

Welcome back. Hundreds of Amazon

0:02

employees in Quebec are left to pick up

0:04

the pieces following the shuttering of

0:06

warehouses across the province. Amazon

0:09

Canada says it's stopping operations at

0:11

seven of its facilities over the next

0:13

two months, which is resulting in more

0:15

than 1,700 layoffs. He worked hard to

0:18

climb the ranks to supervisor over the

0:21

past four years. So, it's hard to find

0:23

one stable job and uh yeah, we can we

0:26

have to just start over like we have to

0:29

we have to start at the beginning.

0:31

>> Nobody saw this coming.

0:33

>> Well, Adrian, it will no longer be

0:34

Amazon drivers showing up at the door.

0:36

>> Canada is in absolute disbelief as

0:39

Amazon walks out of Quebec, shutting

0:42

down every warehouse and leaving a

0:44

crater in the province's [music]

0:46

economic landscape. Seven hubs gone.

0:49

Nearly 2,000 livelihoods erased in one

0:52

sweep. A region that once powered

0:54

Amazon's growth now left out in the

0:56

cold. You don't exit an entire province

0:59

unless something deeper is burning

1:01

[music] beneath the surface. And believe

1:03

me, this is far bigger than layoffs.

1:06

Something forced Amazon out. And we're

1:08

here to break down the part they're not

1:10

saying out loud. Amazon closing all

1:13

seven [music] of its warehouses in the

1:14

province, laying off all of its 1,700

1:17

staff members.

1:19

>> Amazon is a private companies. So why do

1:22

they do that? How do they do that?

1:26

The answer must [music] be asked to to

1:29

Amazon.

1:30

>> What we are witnessing here goes far

1:32

beyond a routine corporate decision.

1:34

This marks a structural break in

1:36

Canada's logistics framework. Seven

1:39

Amazon facilities across Quebec are

1:41

scheduled for shutdown within weeks. And

1:44

this instantly reshapes how goods move,

1:46

how warehouses operate, and who controls

1:49

distribution power. Fulfillment hubs,

1:51

sorting centers, last [music] mile

1:53

stations, and even AMXL large item

1:56

processing. All wiped from the

1:58

provincial supply chain in one sweeping

2:00

shift. When the company expanded four

2:03

years ago in Quebec, it touted greater

2:05

demand as well as the need for faster

2:07

deliveries. Well, soon the closest

2:10

fulfillment center will be in Ottawa. In

2:12

fact, there will be none east of

2:14

Ontario. [music] Adrian,

2:15

>> with Quebec's infrastructure removed,

2:17

the province now relies heavily on

2:19

Ottawa as the nearest distribution

2:21

center, shifting economic gravity

2:23

westward and redirecting transport flow

2:26

through Ontario. This means delivery

2:29

routes stretch further. Fuel consumption

2:31

increases and logistical influence moves

2:34

away from Quebec's borders. A single

2:36

corporate exit has the ability to

2:38

rearrange freight lanes, transportation

2:40

contracts, and regional warehouse

2:42

strategy across Eastern Canada.

2:44

>> Amazon parcels in Quebec will be handled

2:47

by different distributors soon, and

2:49

hundreds of workers are left to find

2:51

jobs elsewhere. Amazon Canada says it's

2:54

shutting down operations [music]

2:56

at seven of its warehouses over the next

2:59

two months. The corporate Mega Power

3:01

says it's reverting back to their old

3:03

business model, [music]

3:04

using third-party companies for package

3:07

deliveries. One union is calling the

3:09

move a push against labor rights. One

3:11

representative called it a slap in the

3:13

face for all Quebec workers, and it's a

3:16

move that runs counter to the provisions

3:18

of the labor code and one will be taking

3:21

a firm stand against. workers felt the

3:24

impact first. And the human cost speaks

3:27

louder than any spreadsheet or press

3:29

release. Nearly 2,000 people arrived

3:32

expecting a normal workday and [music]

3:34

walked into a corporate earthquake.

3:36

Careers built over years suddenly

3:38

without direction. Families now forced

3:40

to recalculate their future overnight.

3:43

Many of these employees climbed from

3:45

entry-level roles into supervisors and

3:48

specialists through effort, consistency,

3:50

and dedication. One announcement swept

3:53

through those achievements like a storm,

3:55

leaving uncertainty in its wake and

3:56

pushing thousands of households into

3:59

immediate financial reconsideration.

4:01

>> Quebec is home to Amazon's only

4:03

unionized workforce in Canada.

4:05

>> We did unionize one facility and we were

4:08

working very hard to form unions in

4:10

other facilities. And Amazon is really

4:14

anti-UN.

4:15

>> Workers at this delivery station in

4:17

Laval successfully joined a union last

4:19

May. dissatisfied with what they

4:21

described as low wages and inadequate

4:24

health and safety measures.

4:26

>> This is more than numbers. This is

4:29

disruption rippling through kitchens,

4:31

bank accounts, and breakfast

4:32

conversations across Quebec. A shutdown

4:35

of this scale reaches beyond facility

4:37

doors and into communities, rental

4:40

markets, grocery bills, child care

4:42

decisions, even mental health. A stable

4:45

income disappears and entire

4:47

neighborhoods absorb the shock as

4:49

spending drops, savings shrink, and job

4:51

searches multiply. The emotional wave

4:54

matters as much as the economic one

4:56

because it reshapes how people feel

4:58

about work, corporate loyalty, and

5:01

trust.

5:02

>> The company challenged the certification

5:04

process, but Quebec's labor tribunal

5:07

dismissed the case. For months, the

5:10

union has been trying to negotiate a

5:12

collective agreement. It's pretty clear.

5:13

They're setting down their facility in

5:15

Quebec to provide an example and to set

5:19

precedent and to send a signal across

5:22

North America to all unions who are

5:23

attempting to organize in the sector.

5:26

>> Our labor market now holds thousands of

5:28

skilled workers with warehouse

5:30

logistics, robotics, and distribution

5:32

experience. This massive job

5:34

displacement that pressures job markets,

5:37

increases competition, and strains an

5:39

economy already fighting to keep

5:41

momentum. Some will transition, some

5:44

will relocate, but many will struggle to

5:46

replace the stability that they once

5:48

had. A workforce this large leaves a

5:51

void in a corporation and a weight on

5:53

the country.

5:54

>> And workers at one Amazon facility have

5:56

unionized and secured a collective

5:57

[music] agreement. And so, you know,

5:59

with Amazon's reputation as being quite

6:01

an anti-UN employer, uh this is not a

6:04

surprising uh outcome as unfortunate as

6:06

it is.

6:07

>> Most of the families, the communities,

6:09

and the workers will have had to move

6:10

on. Anti-UN accusations sparked after

6:14

the e-commerce giant said in the past

6:16

that it doesn't think unions are the

6:18

best option for its employees. Now,

6:21

here's where things start getting even

6:23

more interesting. Because Amazon didn't

6:25

just shut down buildings. [music]

6:27

They exited the only province where

6:29

workers successfully formed a union.

6:32

Think about that for a second. Quebec

6:34

was the one place in Canada where

6:35

[music] employees pushed through

6:37

certification, organized, negotiated,

6:40

and demanded better conditions. And

6:42

shortly after that win, every [music]

6:44

warehouse disappeared. That timing

6:46

raises eyebrows everywhere, especially

6:48

among labor experts watching this

6:50

unfold.

6:51

>> This is a very powerful U message and it

6:54

will send a chill uh across those uh

6:57

drives. Quebec's labor minister says the

7:00

affected workers are top of mind [music]

7:02

and he will ensure the company respects

7:04

labor laws as for whether he believes

7:07

Amazon's explanation.

7:08

>> We will receive the notice of collective

7:11

dismissal. We will analyze the

7:13

situation. Unions describe this as a

7:16

message almost like Amazon placed a

7:18

billboard across the industry saying we

7:20

prefer places where organizing [music]

7:22

remains difficult and whether you agree

7:24

or disagree with that interpretation the

7:26

[music] effect is the same. Unionized

7:28

workers want approval and then saw the

7:30

entire structure pulled out from

7:32

underneath them. For months,

7:33

representatives sat at negotiation

7:35

tables pushing for safer workloads,

7:37

[music] fair wages, and healthcare

7:39

protections that many warehouse

7:41

employees said they desperately needed.

7:43

Instead of long bargaining rounds,

7:45

everything resets and the company shifts

7:48

towards [music] subcontracted partners

7:50

who operate under different labor

7:52

dynamics. Well, in grand scheme of

7:54

things, 1,700 people isn't a huge number

7:56

in the total employment in Quebec. But

7:58

of course, uh, anytime you're losing

8:00

jobs, especially something like Amazon,

8:01

which could be here for years and years

8:03

is a worrying sign. Uh, if Amazon

8:06

leaves, is this sending a signal then to

8:07

other companies that it's time to leave

8:09

as well? and what's the motivation

8:11

that's driving Amazon to leave the

8:12

province is also going to be a factor uh

8:14

that needs to be considered beyond just

8:16

the number of uh jobs that are lost.

8:18

>> This changes the union movement too.

8:20

Quebec is no longer just one victory.

8:21

[music]

8:22

It becomes a case study, something every

8:24

worker in BC, Ontario, Manitoba, and

8:27

beyond will analyze carefully. Labor

8:29

leaders watch, employers watch,

8:32

governments watch because how this plays

8:34

out sets [music] the tone for the future

8:36

of warehouse organizing across the

8:38

country. If Amazon moves work to

8:41

contractors instead of direct [music]

8:42

employees, union access becomes much

8:45

harder and the whole balance of power

8:47

inside logistics sectors shift.

8:50

>> This might just be let's get out quickly

8:51

before we get subjected to uh tariffs

8:54

and find that we can't deliver the same

8:56

cost effectiveness because there's now

8:58

this extra cost that's added in.

8:59

>> Now, here's where the story [music]

9:01

explodes. Amazon didn't just leave

9:03

Quebec. They changed the entire delivery

9:05

game in one move. No warehouses, no

9:07

fulfillment centers. Yet millions of

9:09

packages still need to move. So what's

9:12

happening? Amazon [music] is tossing its

9:14

entire logistics chain into the hands of

9:16

outside carriers, thirdparty fleets,

9:19

private contractors, smaller operators

9:21

ready to race for a contract once

9:23

handled by Amazon itself.

9:25

>> It reminds me of Walmart when [music]

9:27

they did this in the past as well. Um

9:29

there I think there's only been two

9:31

unionized Walmarts [music] and they were

9:33

both in Quebec and the first time it

9:34

happened, Walmart also closed. They

9:36

claimed it was for, you know, economic

9:39

reasons. They had a business case of why

9:41

they were going to close it. I think the

9:42

reality of um some of these companies

9:45

that are so large [music] and these

9:46

multinational organizations is that they

9:49

can at any point in time make a business

9:51

case [music] to close any store.

9:53

>> Think about that shift. The company that

9:55

built its empire on owning every step of

9:57

delivery just lifted its foot off the

10:00

province and handed the steering wheel

10:01

to someone else. This means new

10:03

companies scramble to fill the gap. New

10:05

routes [music] form without planning

10:07

time and millions of dollars in delivery

10:09

contracts scatter into the market like

10:11

wildfire. The flow of money, power, and

10:14

control breaks wide open, but only

10:17

because a giant stepped back, leaving

10:19

[music] chaos where structure once

10:21

stood.

10:21

>> Uh you can't delay in the same way here

10:24

in Canada, especially [music] in Quebec.

10:25

And so they've secured a collective

10:27

agreement and Amazon's response it looks

10:29

like has been to uh move out of the

10:31

province or shift to a model that

10:33

depends on contractors instead.

10:35

>> This is where the shock becomes

10:37

nationwide. Move this large stretches

10:39

far beyond Quebec and forces every

10:41

province to pay attention. Quebec stands

10:43

as the first major domino and Canadians

10:46

everywhere are asking a serious

10:47

question. Who faces impact next? When a

10:50

corporation of Amazon size withdraws

10:52

from an entire region, the signal it

10:55

sends travels faster than trucks ever

10:57

could. Executives, governments, and

10:59

investors notice [music] instantly

11:01

>> that we're not going to see a disruption

11:02

to our services, timing, or what we pay.

11:05

It's just that those jobs are going to

11:06

disappear, and it's going to be left for

11:07

the Quebec government or other

11:08

industries to figure out how to absorb

11:10

those 1700 workers.

11:12

>> Economic pressure ripples outward. One

11:14

major exit often inspires

11:16

reconsideration across other countries,

11:18

influencing where they build facilities,

11:20

hire workers, or expand operations.

11:23

Quebec [music] becomes the test case,

11:25

the example other provinces study when

11:27

gauging corporate confidence and labor

11:30

climate. A full withdrawal reshapes

11:32

perception of stability, risk, and

11:35

long-term investment potential across

11:36

the country. um Quebec courts, they said

11:39

that when Walmart closed, [music] it was

11:40

a response to the unionization, but the

11:43

punishment or the penalty for doing that

11:45

often comes years later. So companies,

11:48

they calculate these moves out [music]

11:49

and you know, if Amazon is closing

11:51

because of unionization and if that does

11:53

come out in the courts later, [music]

11:54

they won't face a penalty for years and

11:58

by that time most of the families, the

12:01

communities and the workers will have

12:02

had to move [music] on.

12:03

>> And that is the real weight to this

12:05

moment. A complete regional shutdown

12:08

pushes business calculations in motion.

12:10

It affects future job creation across

12:13

provinces [music] and it reshapes how

12:15

corporate giants evaluate Canada's

12:17

climate. One move triggers an economic

12:19

rethink. And this rethink starts with

12:22

Canada on the defensive trying to

12:24

explain why one of the world's largest

12:26

companies just walked out the door.

12:29

Amazon believes that robots like these

12:32

are the future. At this facility outside

12:34

Boston, we saw how they can lift, scan,

12:36

and place products. [music] The kind of

12:38

work Aaron Martin used to do.

12:40

>> It'll suction onto the box uh to pick it

12:43

up, and then it'll place it in the tote

12:45

where it needs to go.

12:46

>> Is this robot doing work that humans

12:48

used to do?

12:49

>> Um, similar, yes.

12:51

>> But there is another factor sitting

12:53

beneath all of this. Automation

12:55

readiness. Amazon is building a future

12:58

on robotics, AIdriven fulfillment,

13:01

automated picking systems, [music] and

13:03

lightning fast warehouse output. The

13:05

countries that win its investment are

13:07

the ones where automation is cheap, fast

13:09

to deploy, and free of slow approved

13:12

bureaucracy. Canada [music] still runs

13:14

industrial decisions through paperwork,

13:16

through consultation, regulation, while

13:19

other nations are building robotics into

13:20

production floors at twice the pace.

13:22

Will the workforce at Amazon shrink as a

13:25

result of automation, robots, AI? What

13:27

do you say?

13:28

>> Our populations and sizes where people

13:30

sit in the footprint is going to vary as

13:32

we grow.

13:32

>> So, it'll change.

13:34

>> It'll vary as we grow.

13:35

>> This shutdown isn't just about today's

13:37

cost. It may be about tomorrow's

13:39

efficiency. If Quebec couldn't support

13:41

Amazon's next generation warehouse

13:42

model, then pulling out is not just a

13:45

retreat, it's realignment. There's also

13:47

the cold geography logic that

13:49

corporations never ignore. Canada is

13:51

huge in land but pretty small in

13:53

population. Long delivery distances,

13:56

scattered customer density, high fuel

13:58

consumption per shipment. When profits

14:00

tighten globally, companies don't anchor

14:03

in regions where miles outweigh margins.

14:05

Quebec became a long route, a high-cost

14:08

distribution zone in a business model

14:10

built on speed and density. Amazon

14:13

didn't shrink because demand fell. It

14:15

shrank because distance costs too much

14:17

to sustain. Will it add to the cost?

14:20

probably not because if Amazon feels

14:22

that they can find a more cost-effective

14:23

way of doing things, then either that

14:26

benefit is either going to go to uh

14:28

Amazon shareholders and owners or it's

14:30

going to be passed along to the

14:31

consumers or probably likely both and

14:33

that we're not going to see a disruption

14:34

to our services timing or what we pay.

14:37

It's just that those jobs are going to

14:38

disappear and it's going to be left for

14:39

the Quebec government or other

14:40

industries to figure out how to absorb

14:42

those 1700 workers. And there's another

14:45

layer building behind the scenes.

14:46

Something many Canadians haven't

14:48

connected to this exit yet. With new US

14:50

tariffs squeezing crossber trade,

14:53

logistics costs are climbing and the

14:55

American market suddenly offers easier,

14:58

cheaper, more scalable ground for a

15:01

corporation like Amazon. The closer you

15:03

operate to the US, the less impact

15:05

tariffs have and the more profit margins

15:08

stay alive. That shift reduces Canada's

15:10

leverage and increases the appeal of

15:13

moving operations south or operating

15:15

remotely instead of investing heavily in

15:18

Canadian soil.

15:18

>> And I think that the longer that these

15:20

tariffs when they do come and stay in

15:22

place, the more we're going to see

15:23

businesses start to say maybe we need to

15:25

shift production to the US.

15:26

>> If a corporation can save millions just

15:29

by relocating footprint or rerouting

15:31

distribution, I mean, what stops them?

15:34

Amazon's exit may be the first crack in

15:36

a much larger wall. a sign that [music]

15:39

Canada risks losing corporate gravity to

15:41

US incentives, policy advantage, and

15:44

much cheaper operating paths. Economic

15:47

decisions follow math, not emotion. And

15:49

the math is tilting away from us.

15:51

Tariffs are a way to do it, even if it

15:53

destroys the economies around them. I

15:55

don't think that's the concern of this

15:56

White House. Uh, and so it's possible

15:58

that Amazon is just the first mover

15:59

among many that might be coming in

16:01

coming months.

16:01

>> And when a giant leaves, the real estate

16:04

starts speaking. Millions of square feet

16:06

of fulfillment infrastructure now sit

16:08

dark. Silent warehouse space is one of

16:10

the strongest economic indicators of a

16:12

slowdown. Active logistics hubs generate

16:15

trucking routes, payroll chains, packing

16:17

demand, fuel flow, equipment

16:19

maintenance, but dead space generates

16:22

nothing.

16:23

>> So, Amazon saying [music] this morning

16:25

it's going to lay off about 14,000

16:27

corporate employees as it restructures

16:29

for the AI era, marking the latest move

16:31

in a multi-year effort to streamline.

16:33

Another consequence unfolds in the

16:35

background as well. Thousands of trained

16:37

workers suddenly stand outside the gates

16:39

of employment. Forklift operators,

16:41

inventory coordinators, robotics tech,

16:44

delivery supervisors, packaging staff,

16:47

route planners, all experienced, all

16:49

skilled, all displaced at the same time.

16:52

Other companies rarely see a labor shift

16:54

of this size. And the question becomes

16:56

whether Canada can absorb it fast enough

16:59

to prevent an unemployment surge.

17:01

Thousands of workers will be uh laid off

17:04

uh in warehouses and different delivery

17:07

centers, but also uh people that uh

17:10

deliver deliver themselves. So, people's

17:12

uh uh uh driving the trucks uh will also

17:15

be uh laid off. And that's just um it's

17:18

outrageous. I have no other words for

17:20

it.

17:20

>> This shift increases pressure on job

17:22

markets. It strains provincial hiring

17:25

capacity and intensifies competition for

17:28

roles already limited by a slowing

17:30

economy. Smaller delivery providers and

17:33

logistics firms face a landscape without

17:35

a stabilizing anchor. Growth becomes

17:38

reactive, uncertain, and fragmented.

17:41

Quebec moves forward, yes, but forward

17:43

through recovery, [music]

17:44

not expansion.

17:46

>> No, I mean, we know the anti-UN position

17:49

of Amazon, right? Uh there's only one

17:52

union in the United States, only one

17:54

union here in Canada [music] uh here

17:56

with us at the CSN and uh we've had our

17:59

labor board uh condemn Amazon for

18:02

anti-UN union practices. So this is not

18:05

a surprise. The surprise might be that

18:07

they're [music] um they're laying off or

18:10

they're closing all their activities in

18:12

Quebec.

18:12

>> And let's be real, shoppers feel this.

18:15

With no fulfillment network in Quebec,

18:17

products sit farther away, [music]

18:18

deliveries stretch longer, and third

18:20

party drivers take the place of Amazon's

18:22

trained fleet. Packages will still show

18:25

up, but slower, less predictable, and

18:27

far less prime than Canadians are used

18:29

to. This isn't just the loss of

18:31

warehouses. It's the loss of

18:33

convenience, speed, and reliability.

18:35

Amazon leaves, and [music] Canada is

18:37

left standing in the aftermath. looking

18:39

to rebuild from a blow that shook more

18:41

than jobs.

18:42

>> [music]

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