On November 17, 2025, multiple outlets reported that Toys “R” Us Canada is undergoing a major downsizing of its Canadian operations, with at least 38 stores closed in 2025 and another 12 properties listed for sale, reducing its footprint from 103 locations to about 40 stores nationwide [HR Reporter, Edmonton Journal].
Earlier in the year, Canadian news outlets reported store closures across multiple provinces, including Ontario, Quebec, Alberta, and others [CityNews Montreal; Red Deer Advocate; Hardlines].
For affected employees, particularly store staff, managers, and head office employees, understanding your rights is crucial before signing any severance offer.
What Toys “R” Us Announced
According to HR Reporter, Toys “R” Us Canada has closed at least 38 stores in 2025 and listed an additional 12 locations for sale, leaving about 40 stores nationally [HR Reporter].
Provincial reporting shows significant impacts across multiple provinces. In Ontario, Hardlines reports closures in London, Thornhill, Mississauga, Sudbury, and Hamilton [Hardlines]. Alberta reporting confirmed the Red Deer store closure [Red Deer Advocate]. In Quebec, Toys “R” Us has closed 11 stores within less than a year, with government layoff notices showing at least 208 job losses [CityNews Montreal].
Toys “R” Us Canada also operates a corporate head office in Vaughan, Ontario. However, the company has not released any public information about whether head-office or administrative staff have been affected by the 2025 restructuring. With no published breakdown, the number of impacted employees remains unknown.
Key point: Even if your store is not listed for closure, your job may still be at risk. If you receive a termination or severance package, it is important to consult an employment lawyer before signing.
Who May Be Affected in Canada?
Public reporting confirms impacts to both store-level retail employees and corporate/support staff. Toys “R” Us Canada employs staff across merchandising, IT, eCommerce, planning, supply chain, finance, and human resources [Toys “R” Us Careers].
Potential Canadian impact areas include:
- Retail employees: store associates, supervisors, assistant managers, store managers.
- Corporate & support roles: HR, merchandising, IT, finance, supply chain, planning, eCommerce.
- Distribution & logistics: warehouse, inventory, and fulfillment-related roles.
Most Toys “R” Us employees in Canada are non-unionized. Monkhouse Law assists non-unionized employees with severance, layoffs, and termination matters.
Your Rights if You’re Laid Off or Terminated
Employers often provide only the minimum termination or severance pay required by provincial employment standards legislation (for example, Ontario’s Employment Standards Act). These minimums vary by province but are typically far less than what employees may be entitled to under common law reasonable notice, which considers factors, including:
- Length of service
- Age
- Position held
- Availability of similar employment in your field
Employers often provide only the minimum statutory severance required by provincial employment standards legislation, such as Ontario’s Employment Standards Act. This may be far less than what employees are entitled to under common law reasonable notice.
Wondering what you’re owed? Use our Severance Pay Calculator to estimate your potential entitlement based on your age, tenure, and role.
Potential Issues with Toys “R” Us Layoff Notices
- Insufficient notice periods — failing to provide adequate notice as required by provincial law.
- Misclassified “temporary layoffs” — where there’s no genuine intent to recall employees.
- Incomplete severance packages — omitting benefits continuation, bonus/commission treatment, or accrued vacation pay.
- Pressure to sign quickly — deadlines that discourage employees from seeking legal advice.
Common Red Flags in Layoff Packages
- Short turnaround times or “sign-by” dates.
- Lump-sum offers that don’t show how amounts were calculated.
- Missing details about benefits continuation or bonus/commission treatment.
- “Temporary layoff” wording when no realistic recall is expected. Learn more: Temporary Layoffs Ontario.
If you see any of these signs, pause and get professional advice from an employment lawyer before signing.
Wrongful Dismissal and Toys “R” Us Layoffs
In Ontario and across Canada, wrongful dismissal occurs when an employer ends employment without providing sufficient notice or pay in lieu as required by common law and provincial employment standards laws. You may have a claim where there is insufficient notice/severance, misclassification (for example, a “temporary layoff” that is effectively a termination), pressure to sign an unfair release, or discriminatory/retaliatory reasons.
Pursuing a wrongful dismissal claim may help you recover additional compensation beyond what was initially offered. Learn more about wrongful dismissal.
How Monkhouse Law Can Help
- Free 30-minute phone consultation to review your severance offer.
- Skilled negotiation to help you secure fair compensation, including benefits and variable pay.
- Representation in wrongful dismissal claims where terminations are mishandled.
Contact Us for a Free Consultation
If you’ve been laid off or offered severance by Toys “R” Us in Canada, don’t sign anything before understanding your rights. Contact Monkhouse Law Employment Lawyers for a free 30 minute phone consultation to ensure your severance package reflects your full legal entitlement.