Urgent Magna Layoffs Canada 2025: London Plant Closure & Worker Rights

Magna Layoffs in Canada: August 2025 Update + Severance Rights

I’ve spent nearly 30 years in the automotive industry across both the U.S. and Canada. Over that time, I’ve gained a deep understanding of how the business really works—the strategies, the shortcuts, and the realities that most people never see.

Magna International, one of Canada’s most prominent multinational automotive suppliers, is facing another wave of job cuts. As of August 2025, the company has announced the permanent closure of its Qualtech Seating Systems plant in London, Ontario, scheduled for October. This marks another chapter in a string of job losses from Magna over the past few years—and raises important questions about what affected employees are entitled to when it comes to severance pay in Canada.

Here’s what you need to know.

About Magna International – Magna layoffs

Founded in 1957 by Frank Stronach as a small tool and die shop in Toronto, Magna International has grown into a global giant in automotive parts manufacturing. The company is known for its focus on innovation, high-quality engineering, and its vertically integrated approach to building entire vehicle systems.

Key Facts:

• Headquarters: Canada

• Employees Worldwide: Over 150,000

• Canadian Workforce: Nearly 20,000 employees across ~50 locations

• Core Business Areas:

  • Body Exteriors & Structures

  • Power & Vision

  • Seating Systems

  • Complete Vehicles

Magna hires across a wide spectrum of roles—from mechanical and software engineers to skilled trades, sales staff, and corporate professionals.

Magna Layoffs: What’s Happening Now?

August 2025

Magna is shutting down its Qualtech Seating Systems facility in London, Ontario, effective October 2025. The closure is permanent. While the company hasn’t released the exact number of affected workers, plant closures of this scale often impact hundreds of jobs.

Previous Layoffs

• April 2020: Magna laid off all 1,100 workers at its Autosystems facility in Belleville, Ontario. This was a direct response to the COVID-19 pandemic and its impact on the auto industry.

Severance Rights for Magna Employees in Canada – Magna layoffs

If you’ve been laid off from Magna—or are worried about potential job loss—you may be entitled to severance pay, especially if you’re a non-unionized employee. Here’s how it breaks down.

Who Is Eligible for Severance?

• Non-unionized employees: Full-time, part-time, and hourly workers

• Locations covered: Ontario, Alberta, British Columbia

• Independent contractors: May also qualify, especially if misclassified as contractors when they were effectively working as employees

Important: Many people wrongly assume that contractors or hourly workers aren’t entitled to severance. In Canada, your job title doesn’t define your rights—your working relationship does.

How Much Severance Can You Get?

Non-unionized Magna employees may be entitled to up to 24 months’ pay as part of a severance package. The actual amount depends on factors like:

• Length of service

• Age

• Role and level of responsibility

• Availability of comparable employment

What If You Were Fired for Cause?

Even if Magna alleges “just cause” for termination, you may still qualify for full severance. Under Canadian law, for-cause dismissal is difficult to prove and must meet a high legal standard. Many employers fall short of that bar.

Learn More About Your Rights

If you’ve recently lost your job—or think a layoff is coming—it’s crucial to understand your legal rights before signing anything. Employers often offer far less severance than you’re legally entitled to, hoping that employees won’t push back.

References – Magna layoffs

1. Samfiru Tumarkin LLP. Severance Pay Ontario: How Much You’re Owed in 2025.
   Retrieved August 2025, from https://stlawyers.ca/law-essentials/severance-pay/severance-pay-ontario

2. Toronto Employment Lawyer (Samfiru Tumarkin LLP). Severance Packages in Mass Layoffs.
   Retrieved August 2025, from https://toronto-employmentlawyer.com/blog/severance/severance-packages-in-mass-layoffs

3. Government of Canada. Termination of Employment, Layoff or Dismissal (Canada Labour Code).
   Retrieved August 2025, from https://www.canada.ca/en/services/jobs/workplace/federal-labour-standards/termination.html

4. Toronto Employment Lawyer (Samfiru Tumarkin LLP). How Does Severance Pay Work in Ontario?
   Retrieved August 2025, from https://toronto-employmentlawyer.com/blog/severance/how-does-severance-pay-work-in-ontario

Premier Employment Law Firms in Ontario – Magna Layoffs.

1. Samfiru Tumarkin LLP

Notable Lawyers: Lior Samfiru (National Co-Managing Partner), Sivan Tumarkin (National Co-Managing Partner), David Vaughan (National Practice Leader), Alex C. Lucifero, Chantel Goldsmith, Gurlal S. Kler, Lumi Pungea, Jon Pinkus, Stan Fainzilberg
About: One of Canada’s most trusted firms for non-unionized employees. They handle wrongful dismissals, severance negotiations, constructive dismissal, employee misclassification, workplace harassment, disability claims, and more. They operate on contingency for many cases and have helped over 50,000 clients.
Link: [Visit Samfiru Tumarkin LLP’s Employment Law page]Samfiru Tumarkin LLP+7Samfiru Tumarkin LLP+7SuperLawyers.com+7

2. Levitt LLP

Notable Lawyer: Howard Levitt (Senior Partner)
About: A leading Toronto-based employment law firm serving both employees and employers. They specialize in wrongful/unjust dismissal, severance, employment contracts, discrimination, human rights, and more. Howard Levitt is a prominent author and columnist with a national profile.
Link: [Explore Levitt LLP’s practice and team]Levitt LLP Employment & Labour LawyersWikipedia

3. Gilbertson Davis LLP

Notable Lawyers: (Team not listed explicitly online)
About: Offers focused and cost-efficient representation for employment and wrongful dismissal matters. Lawyers here have court experience at all levels across Ontario, including appellate courts and labor tribunals.
Link: [Learn more about Gilbertson Davis LLP’s services]Gilbertson Davis LLP

4. Ball Professional Legal Corporation

Notable Lawyer: Stacey Ball
About: Based in Toronto, this firm specializes in wrongful dismissal, unjust dismissal, human rights issues, workers’ compensation, post-employment competition, fiduciary obligations, sexual harassment, and employment contracts. They aim to deliver practical legal guidance tailored to each client.
Link: [Visit Ball Professional Legal Corporation]Stacey R. Ball

5. Miller Thomson LLP

Notable Lawyers: (General firm overview; individual lawyers not specified)
About: A national full-service law firm with strong practice in employment & labour law in Ontario, recognized as a top-tier firm (Chambers Band 1). Offers expansive capabilities in litigation and corporate advice across multiple provinces.
Link: [View Miller Thomson’s profile]Wikipedia

6. Borden Ladner Gervais LLP (BLG)

Notable Lawyers: Louise Arbour, Thomas Cromwell, other senior litigators (general firm-level)
About: A renowned national firm with deep roots in Ottawa and Toronto. Their labour and employment group is recognized for handling complex disputes—including discrimination, wrongful dismissal, and grievance processes—across Canada.
Link: [Check out BLG’s overview]Wikipedia

7. McMillan LLP

Notable Lawyers: (Firm-level overview without individual names)
About: A top-tier Canadian business law firm offering employment law services alongside corporate, litigation, and regulatory work. With offices across major cities, they deliver integrated legal advice on complex workplace issues.
Link: [Explore McMillan LLP’s credentials]Wikipedia

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