(Reuters) - E-commerce giant Amazon.com ( AMZN ) is exiting its operations in the Canadian province of Quebec, leading to the loss of about 1,700 full-time jobs, the company said on Wednesday, prompting Ottawa to express its unhappiness.

The online retailer will phase out operations across seven sites in the province - the only location in Canada with unionized Amazon ( AMZN ) employees - over the next two months.

It will return to a third-party delivery model, relying on local small businesses, similar to its approach before 2020.

"Following a recent review of our Quebec operations, we've seen that returning to a third-party delivery model ... will allow us to provide even more savings to our customers," Amazon ( AMZN ) spokesperson Barbara Agrait said.

In May, Amazon ( AMZN ) warehouse workers represented by the Canadian labor union Confédération des syndicats nationaux (CSN) unionized, citing dissatisfaction with wages and inadequate health and safety measures at the facilities.

Federal Innovation Minister Francois-Philippe Champagne said he had spoken to the head of Amazon Canada and expressed the government's dismay and frustration.

"This is not the way business is done in Canada," he said in a post on X.

The CSN, which represents 300 workers at the site north of Montreal, said the decision made no business sense and directly targets the company's only unionized warehouse in Canada.

The workers were in the process of negotiating their first collective agreement.

"There is no doubt that the closings announced today are part of an anti-union campaign against CSN and Amazon ( AMZN ) employees," said CSN president Caroline Senneville in a French-language statement.

"This move contradicts the provisions of the Quebec Labour Code, which we will strongly oppose," Senneville added, without providing immediate specifics.

The move will also affect approximately 250 seasonal workers. Amazon ( AMZN ) will offer affected employees a package including up to 14 weeks' pay and "transitional benefits such as job placement resources," Agrait added.