The retail landscape in Canada is shifting beneath our feet once again. Hudson’s Bay Company, that storied institution whose roots stretch back to 1670, announced plans to terminate more than 8,300 employees by June as it continues to navigate a challenging retail environment.
The news broke yesterday when HBC informed employees that most positions would be eliminated by the end of next month. This comes as part of the company’s ongoing restructuring efforts, which include the previously announced closure of five Bay stores across the country.
“This is retail’s version of a perfect storm,” explains Diane Brisebois, president of the Retail Council of Canada. “You have inflation squeezing consumer spending, competition from online giants, and the lingering effects of pandemic shopping habits all hitting traditional department stores simultaneously.”
The layoffs represent approximately 31 percent of the company’s Canadian workforce, a dramatic reduction that signals just how serious Hudson’s Bay is about streamlining operations. According to internal communications obtained from employees, the company plans to outsource certain functions to third-party service providers, a move aimed at cutting operational costs.
For Toronto’s retail sector, which has already weathered significant storms, this represents another significant blow. The city will see the closure of the Bay store at Yonge and Bloor, a location that has served as a landmark shopping destination for generations of Torontonians.
“What we’re witnessing isn’t just a company making cuts—it’s the transformation of Canadian retail,” says Mark Satov, founder of Satov Consultants. “Department stores globally are being forced to reimagine their role in consumers’ lives or risk obsolescence.”
The timing is particularly poignant. Hudson’s Bay has been working to reinvent itself in recent years, attempting to position its stores as experiential destinations rather than simply places to buy merchandise. The company had invested in premium brands and in-store experiences, but these efforts appear insufficient to counteract broader market forces.
Retail analysts point to several factors driving HBC’s decision. E-commerce growth has continued to capture market share from brick-and-mortar retailers, a trend accelerated by the pandemic. Meanwhile, specialty retailers have carved out niches that were once the domain of department stores, leaving companies like Hudson’s Bay squeezed from multiple directions.
“The department store model worked brilliantly for over a century,” notes retail historian David Soberman from the University of Toronto’s Rotman School of Management. “But today’s consumers have fundamentally different expectations. They want either the convenience of online shopping or highly curated, specialized retail environments.”
For the thousands of employees affected, the news comes at a particularly challenging time. Canada’s job market has shown signs of cooling, with the unemployment rate ticking up to 6.1% in the latest Statistics Canada report. The retail sector, traditionally a significant employer, has been shedding jobs as companies adapt to changing consumer habits.
“These aren’t just statistics,” says Deena Ladd, executive director of the Workers’ Action Centre in Toronto. “Each of these 8,300 positions represents someone with rent to pay and families to support. The ripple effects will be felt throughout communities across Canada.”
Hudson’s Bay’s decision follows similar moves by other major retailers. Nordstrom exited Canada entirely last year, closing all 13 of its stores. Walmart recently announced the closure of several Canadian locations, while Canadian Tire has been reimagining its store footprint.
What makes Hudson’s Bay different, however, is its iconic status in Canadian culture. The company’s history is intertwined with the country’s own—its trading posts preceded Confederation by nearly two centuries. For many Canadians, shopping at “The Bay” has been a tradition passed down through generations.
“There’s an emotional component here that goes beyond business,” explains retail analyst Lisa Hutcheson. “When Canadians see Hudson’s Bay struggle, it feels like watching a piece of our collective history fade away.”
The company, now privately held by a group led by American businessman Richard Baker, has seen significant transformation in recent years. After acquiring Saks Fifth Avenue in 2013, HBC separated its online and physical store operations for Saks in 2021. Similarly, it split off the e-commerce operations of Hudson’s Bay in 2022.
These strategic moves reflect the company’s attempt to unlock value in its digital operations while managing the challenges of its physical retail footprint. Yesterday’s announcement suggests that more dramatic measures were deemed necessary.
For shoppers, the immediate impact may be noticeable in reduced staffing levels at remaining stores. The company indicated it would be “standardizing” operations across its network, which typically translates to leaner staff-to-floor ratios and potentially reduced services.
The retail sector’s transformation continues to accelerate, with traditional players like Hudson’s Bay fighting to remain relevant. Whether this restructuring represents a painful but necessary evolution or simply delays an inevitable decline remains to be seen.
What’s certain is that for thousands of retail workers and millions of Canadian shoppers, an iconic piece of the retail landscape is changing irrevocably. As Hudson’s Bay navigates this transition, both employees and customers find themselves wondering what will remain of the company that has been part of the Canadian experience for over 350 years.
