Loopio Layoffs: Severance Rights for Toronto Tech Employees

Toronto-based software company Loopio reportedly laid off 12 percent of its team in March 2026 after reviewing market conditions and long-term business priorities.

According to BetaKit, Loopio confirmed that the restructuring reduced its headcount to 260 employees, indicating that approximately 36 employees were affected. Loopio is a business-to-business software company known for its request-for-proposal response platform, and its website lists the company’s address in Toronto, Ontario.

For non-union employees affected by the Loopio layoffs, the most important question is not simply why the restructuring happened. The key question is:

Does your severance package properly reflect your legal rights?

If you worked for Loopio in Toronto, elsewhere in Ontario, or remotely from Ontario, you should understand your employment-law rights before signing a release.

Speak with an Ontario severance package review lawyer before accepting a termination offer.

Loopio layoffs and Ontario severance rights

A layoff, restructuring or role elimination does not remove an employer’s obligation to provide proper notice, termination pay, severance pay or other compensation where required by law.

For many non-union employees in Ontario, termination rights may come from several sources:

• the employee’s written employment contract;

• Ontario’s Employment Standards Act, 2000;

• common-law reasonable notice;

• bonus, commission or incentive compensation plans;

• equity or deferred compensation documents;

• workplace policies; and

• the facts surrounding the termination.

The Ontario government’s guide to termination of employment explains the province’s minimum termination rules. However, statutory minimums are only the starting point. Many non-union employees may be entitled to more than minimum employment standards, unless an enforceable employment contract properly limits their entitlements.

Our page on severance pay in Ontario explains the difference between minimum standards and broader severance-package value.

Why SaaS employees should be careful before signing

Technology employees are often presented with termination packages that look straightforward, but important compensation issues can be hidden in the details.

A Loopio employee’s total compensation may include more than base salary. Depending on the role, a severance review may need to address:

• salary continuation or lump-sum severance;

• health and dental benefits;

• vacation pay;

• annual bonus eligibility;

• sales commissions;

• variable compensation;

• equity-linked compensation;

• deferred compensation;

• RRSP or pension contributions;

• expense reimbursements;

• outplacement support;

• restrictive covenants; and

• confidentiality or non-disparagement language.

Sales, customer success, product, engineering, marketing, revenue operations and management employees may each have different compensation structures. A severance package that ignores variable compensation may be incomplete.

Learn more about bonus and commission rights after termination.

Does calling it a “restructuring” reduce severance?

No. A business restructuring does not automatically reduce an employee’s legal entitlements.

Employers may reorganize, eliminate roles or reduce staffing for business reasons. But if a non-union employee is dismissed without cause, the employee may still be entitled to the notice, severance and compensation required by their contract, employment standards legislation and common law.

Terms such as “restructuring,” “market conditions,” “realignment,” “cost reduction,” “business priorities” or “role elimination” do not, by themselves, determine the value of a severance package.

The legal issue is usually whether the employee received the compensation they are owed.

Our guide to wrongful dismissal in Ontario explains how employees may have additional rights where a termination package is too low.

Common-law reasonable notice for Loopio employees

In Ontario, non-union employees may be entitled to common-law reasonable notice unless a valid employment contract limits them to statutory minimums.

Reasonable notice is assessed individually. Courts often consider factors such as:

• age;

• length of service;

• position;

• character of employment;

• compensation;

• availability of comparable work; and

• the overall job market.

These are often called the Bardal factors, named after the leading Ontario case Bardal v. The Globe and Mail Ltd..

For SaaS employees, the job market can matter. A software developer, account executive, implementation consultant, product manager, revenue operations specialist, customer success manager or senior leader may need time to find comparable employment, especially if the technology sector is experiencing repeated layoffs.

Your employment contract may not end the analysis

Many technology companies use employment agreements that attempt to limit employees to statutory minimums.

Those clauses should be reviewed carefully. A termination clause may be unenforceable if it does not comply with minimum employment standards or if it is drafted improperly.

The Supreme Court of Canada’s decision in Machtinger v. HOJ Industries Ltd. remains an important employment-law decision confirming the significance of employment standards minimums in termination clauses.

For employees, the practical point is simple: do not assume the contract eliminates your ability to negotiate. Have the contract reviewed before signing the severance offer.

Speak with an employment contract review lawyer if your termination package relies on a contract clause.

Bonus, commission and incentive compensation after termination

Loopio employees in sales, account management, customer success, leadership or revenue-related roles may have compensation tied to performance, targets or company results.

If a termination package excludes bonus, commission or incentive compensation, the employee should review the plan language carefully.

The Supreme Court of Canada’s decision in Matthews v. Ocean Nutrition Canada Ltd. is a key reminder that incentive compensation may sometimes be included in wrongful-dismissal damages if the employee would have earned it during the reasonable notice period and the plan does not clearly remove that right.

Employees should check whether their offer accounts for:

• earned but unpaid commissions;

• pipeline commissions;

• quarterly or annual bonuses;

• sales accelerators;

• management incentives;

• deferred compensation; and

• equity or equity-like compensation.

Our page on sales employee severance and commission disputes explains common issues for employees with variable compensation.

Could mass-termination rules apply?

Ontario has special mass-termination rules where 50 or more employees are terminated at an establishment within a four-week period.

The Ontario government’s Form 1 notice page states that where an employer terminates 50 or more employees at an establishment in a four-week period, it must submit Form 1 to the Director of Employment Standards, post a copy in the workplace and provide a copy to each affected employee.

Based on the public reporting that approximately 36 employees were affected by Loopio’s March 2026 cuts, the Ontario mass-termination threshold may not be triggered by that reported round alone. However, employees should still pay attention to whether there were multiple related termination waves, whether employees were assigned to the same establishment, and whether remote employees were included.

Our guide to mass layoffs and group terminations in Ontario explains when Form 1 issues may arise.

What if you worked remotely from Ontario?

Loopio has described itself as a remote-first workplace. Remote work can create important legal questions when an employee is laid off.

An Ontario-based employee should consider:

• where they physically performed the work;

• which company employed them;

• what province or country the employment agreement refers to;

• where payroll was administered;

• whether the employee reported to a Toronto team;

• whether the employee was assigned to an Ontario establishment;

• whether any U.S. or international policies were applied; and

• whether the termination package complies with Ontario minimum standards.

A remote employee should not assume that a non-Ontario policy or foreign template controls the entire analysis.

Our remote employee severance lawyer page explains common issues for Ontario employees working for companies with cross-border teams.

What documents should Loopio employees keep?

Before signing a termination package, affected employees should save copies of:

• the termination letter;

• the severance offer;

• the release;

• the employment agreement;

• any updated offer letter or promotion letter;

• bonus, commission or incentive plans;

• equity or deferred compensation documents;

• recent pay statements;

• benefits information;

• vacation records;

• performance reviews;

• communications about the layoff; and

• any documents referring to post-employment restrictions.

Employees should avoid relying only on the employer’s summary of their rights. The full value of a package often depends on the contract and compensation documents.

Read our guide on what to do before signing a severance package.

Watch for restrictive covenants and release language

Severance packages often include release language requiring the employee to give up potential claims in exchange for the offered compensation.

Employees should review whether the documents contain:

• broad release wording;

• confidentiality obligations;

• non-disparagement language;

• non-solicitation restrictions;

• intellectual-property acknowledgements;

• return-of-property obligations;

• cooperation clauses;

• repayment provisions; or

• limits on future compensation claims.

Ontario generally restricts many non-compete agreements, but non-solicitation, confidentiality and intellectual-property clauses may still matter after employment ends.

A severance package is not only about the dollar amount. The legal obligations attached to the package can also affect the employee’s next job.

Are unionized employees treated differently?

This article is for non-union employees.

Unionized employees usually must deal with layoff, recall, termination and severance issues through their union and collective agreement. Non-union employees, by contrast, may have individual rights under their employment contract, employment standards legislation and common law.

If you are not covered by a collective agreement, you should obtain advice before signing a severance release.

Speak with a Toronto employment lawyer before signing a Loopio severance package

If you were laid off by Loopio in Toronto, elsewhere in Ontario, or while working remotely from Ontario, do not sign your severance package before understanding your rights.

Our firm represents non-union employees in severance reviews, wrongful dismissal claims and termination-package negotiations. We can review your employment contract, assess your compensation, identify bonus or commission issues and advise whether your package should be negotiated.

Contact our employment law team to request a consultation before signing your Loopio severance package.

This article provides general information only and is not legal advice. Severance entitlements depend on the employee’s contract, role, compensation, length of service, workplace location and other facts.