Layoffs Surge in Canada: 63,000+ Workers Affected Since January Across Government, Manufacturing, Tech
Canada has seen 63,560 workers laid off across 229 companies since January 2026, with government agencies accounting for the largest share, followed by manufacturing and technology sectors. Ontario leads by province with 16,953 layoffs.
2026 Layoff Snapshot
Since January 2026, 63,560 workers across 229 Canadian companies have been laid off. The hardest-hit industries are Government (24,273 workers), Manufacturing (8,232) and Technology (7,164). By province, Ontario leads with 16,953 layoffs, followed by Quebec (5,586) and British Columbia (3,653).
Sectors Under Pressure
Government agencies have absorbed the largest share of job losses, with federal budget cuts and restructuring driving reductions across multiple departments. Manufacturing has faced significant challenges related to tariffs and supply chain disruptions. Heico Companies, a steel fastener factory in Quebec, laid off approximately 140 employees, mainly in Quebec, following a significant loss of orders due to U.S. tariffs on Canadian steel, with the factory losing about a third of its orders in less than a week.
Technology companies have also conducted workforce reductions, though at lower volumes than government and manufacturing combined. Most layoffs have been permanent terminations rather than temporary interruptions, meaning employees should expect formal severance and notice periods as required by provincial employment standards.
What This Means for Foreign Workers and Job Seekers
If you are on a work permit tied to a specific employer, monitor your company's financial health and union announcements closely. Government layoffs may affect publicly funded sectors like healthcare and education, which sometimes employ skilled immigrants. If you lose your job through a layoff, you may qualify for Employment Insurance (EI) benefits depending on your status. Temporary foreign workers should be aware that layoffs are more common in manufacturing and can affect regional job availability. If you are considering relocation to Canada for employment, prioritize sectors outside the hardest-hit areas or choose provinces with lower layoff counts if mobility is an option.
Sources
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