What Do the Ssense Layoffs Mean for Canada’s Fashion Industry?
Why did Ssense layoff more employees in 2025?
Montreal-based fashion retailer Ssense has let go of roughly eight per cent of its workforce in another round of layoffs, marking at least the third cutback in just one year. Employees across multiple departments were impacted, according to internal communications and sources familiar with the company’s operations.
Management has cited economic pressure, liquidity issues in luxury retail, and uncertainty tied to U.S. trade policies as key reasons for the cuts. Some staff were told that the layoffs were part of a broader effort to conserve cash as the global retail landscape becomes increasingly unpredictable.
What else is changing at Ssense beyond the layoffs?
Alongside the job cuts, current and former employees have reported reductions in employee benefits. The company has rolled back its parental leave program, frozen promotions, and cancelled year-end bonuses. These internal changes have left many employees feeling disconnected and demoralized, especially as departments operate in silos with limited transparency about broader business decisions.
How are U.S. tariffs affecting Canadian companies like Ssense?
Tariff policies imposed by U.S. President Donald Trump earlier this year have shaken global markets, hitting fashion retailers that rely on American buyers particularly hard. Ssense, which sells products from nearly 800 brands globally, halted sales of Chinese and Hong Kong merchandise to U.S. customers to avoid import levies. That merchandise previously made up about 17 per cent of its inventory.
CEO Rami Atallah acknowledged these disruptions in a staff email back in February, saying the firm had been preparing for trade challenges since late 2024. He also warned that if tariffs expand into other regions like Europe, the entire industry could face a pricing and supply chain overhaul.
What does this say about Ssense’s overall health?
While publicly the company has maintained that it’s financially stable and focused on long-term strategy, the multiple rounds of layoffs and internal cost-cutting paint a different picture. One employee noted a disconnect between leadership’s messaging and the real-time changes happening inside the company.
The recent moves are particularly notable given Ssense’s growth over the last few years, including a high-profile investment by Silicon Valley’s Sequoia Capital in 2021, which valued the firm at approximately $5 billion.As of December 2024, Ssense employed nearly 1,900 people. The most recent cuts have reduced that number further. The company declined to comment directly on the latest staffing changes, but its senior communications director stated that the structural adjustments are intended to align the business with evolving priorities and support future success.
Let Go from Ssense? Know What You’re Really Owed
If you were recently impacted by Ssense’s latest round of corporate layoffs, don’t rush to sign off on any severance offer. In Ontario, non-unionized employees may be entitled to significantly more than what’s initially provided in a termination package. It’s based on several key factors including your position, age, length of service, and salary. In many cases, you could be entitled to as much as 24 months’ pay.
At Whitten & Lublin Employment Lawyers, we’ve helped professionals in fashion, retail, and corporate sectors get the full compensation they deserve. If you’ve been impacted by the Ssense downsizing, call us at (416) 640-2667 or reach out online for consultation.