Canada’s Hudson’s Bay Company is planning to lay off 8,347 employees, or 89% of its workforce, by 1 June 2025.
In a motion filed on 26 May 2025, Hudson’s Bay stated that employees “will be paid their accrued vacation pay as at their date of termination, however, the company does not expect any other termination or severance payments to be paid by the company upon termination”.
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The layoffs come as the retailer prepares to complete its liquidation sale and shut down all its stores.
Founded in 1670, Hudson’s Bay department stores have long anchored shopping malls across the country. However, the stores have struggled in recent years with reduced foot traffic and the growing dominance of online commerce.
The planned layoffs occur against a backdrop of rising unemployment in Canada, with the national jobless rate reaching 6.9% in April 2025 – the highest level since November 2024, as reported by Reuters.
Canada’s export-driven economy has also been affected by US tariffs.
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By GlobalDataThe company is pursuing a declaration under the Wage Earner Protection Program Act (WEPPA) to support affected employees. This declaration would enable terminated workers to receive eligible unpaid wages, including severance and termination pay, salaries, commissions and vacation pay.
In March 2025, Hudson’s Bay announced that it would pursue a full liquidation of its stores unless an alternative could be found. The move followed the initiation of restructuring proceedings earlier that month.
Of 1,017 employees remaining after 1 June, 899 are expected to lose their jobs around 15 June when the company’s distribution centres close.
The final 118 workers will remain to assist with winding down operations under the Companies’ Creditors Arrangement Act (CCAA).
Prior to the liquidation process, Hudson’s Bay employed 9,634 people across 96 stores, four distribution centres and its head office.
Hudson’s Bay’s brand assets, including its coat of arms and signature stripes, were acquired by the Canadian Tire Corporation for C$30m ($21m) in May 2025.
