Stories
Amazon May Cut 5000 Jobs and Close New York Warehouses Over Labor Law
- •Amazon could shut down 15 delivery facilities in New York City and eliminate thousands of jobs if the proposed Delivery Protection Act passes.
- •The legislation, backed by Mayor Zohran Mamdani, would require Amazon to directly employ over 5,000 contracted drivers instead of using independent partners.
- •Logistics experts warn Amazon might follow its previous playbook from Montreal, where it closed seven warehouses and cut thousands of jobs following union pressure.
- •Small delivery firms and independent partners expressed deep concern that a corporate withdrawal would devastate their businesses and leave employees stranded.
Key Questions Answered
The Delivery Protection Act is a proposed measure backed by New York City Mayor Zohran Mamdani that aims to change how major delivery companies engage workers. It requires retail giants like Amazon to directly employ more than 5,000 drivers instead of relying on independent delivery contractors, with supporters arguing it will improve pay and workplace safety.
Amazon has reportedly warned that it could shut down 15 delivery facilities across New York City and move thousands of jobs elsewhere rather than change its operating model. Logistics analysts and former executives suggest the company could follow a playbook similar to its Montreal exit, where it closed warehouses and cut ties with third-party drivers following union pressure.
A withdrawal by Amazon could impact around 40 independent delivery service partners and put approximately 2,000 warehouse employees at risk. Small business owners note that the legislation would leave them unable to continue operating under current arrangements, threatening jobs for hundreds of drivers.
