Québec might want to reconsider reviving its short-lived provincial Amazon competitor.
What happened: Amazon will close its seven operational sites across Québec over the next two months and will return to using third-party providers to fulfill orders. The sudden and shocking move will result in the dismissal of over 1,700 full- and part-time workers.
- Amazon opened its first site in Québec in 2020, but the company says the third-party model will cut costs and result in better service.
- It’s likely that Montréal-based courier Intelcom, which is already used by Amazon to carry out deliveries, will pick up much of the slack.
Big picture: It’s worth noting that last year Québec’s Laval fulfillment centre became the only unionized Amazon workplace in Canada, and that those workers are demanding higher wages. Amazon denied this played a role in its departure, but the union thinks otherwise.
- There’s also speculation Amazon may have struggled with Québec’s strict language laws, which require French translations for some contracts and packaging.
Bottom line: It’s still unclear what Québec-specific issues forced Amazon to make the move. Elsewhere in Canada, Amazon has rapidly grown its footprint, expanding to 70 operations and logistics sites last year.—QH