E-commerce giant Amazon (AMZN) is shutting down its seven warehouses in Quebec, Canada, over the next two months. As a result, 1,700 full-time employees and 250 temporary workers in the province will lose their jobs. The decision comes at a time when Amazon is having difficulties with its unionized employees at a warehouse in Laval, Quebec. Amazon had opposed its employees’ decision to join a union, but a labor tribunal ultimately ruled in favor of the workers.
Invest with Confidence:
- Follow TipRanks' Top Wall Street Analysts to uncover their success rate and average return.
- Join thousands of data-driven investors – Build your Smart Portfolio for personalized insights.
Unsurprisingly, Amazon claimed that the warehouse closures were not a response to the unionization efforts. However, it is worth mentioning that in July, workers at the KSBD air hub in Southern California went on strike after claiming that Amazon retaliated against their efforts to organize. In addition, Amazon got hit with a lawsuit in November after a union buster allegedly threatened a driver with violence at a Queens distribution center. Therefore, it is easy to see how Amazon’s timing makes its statement a little hard to believe.
Nevertheless, whether or not this is in response to unionization efforts, the company says it will go back to its old business model of relying on other companies to deliver packages in Quebec.
Is Amazon Stock Expected to Rise?
Turning to Wall Street, analysts have a Strong Buy consensus rating on AMZN stock based on 48 Buys and one Hold assigned in the past three months, as indicated by the graphic below. After a 50% rally in its share price over the past year, the average AMZN price target of $251.35 per share implies 7.1% upside potential.
