Amazon Threatens Thousands of NYC Job Cuts Over Proposed Labor Bill

Amazon has stated it would close more than a dozen distribution warehouses across New York City and eliminate thousands of jobs if a labor bill, known as the Delivery Protection Act, is enacted. Industry experts suggest the e-commerce giant is likely to follow through on this threat, drawing parallels to its actions in Quebec.

The proposed legislation would require Amazon to directly hire approximately 5,000 delivery workers in New York City who are currently employed by third-party contractors. Proponents of the bill argue it will lead to increased pay and improved safety for these workers, a sentiment echoed by delivery companies who would also be affected.

However, Amazon does not directly employ delivery workers in any other part of the United States and has a history of opposing such mandates. Experts believe that if the bill passes, not only could these 5,000 delivery jobs leave the city, but Amazon might also shut down its 15 last-mile warehouses in New York City, leading to the termination of an additional 2,000 employees who staff these facilities.

In early 2025, Amazon closed seven warehouses near Montreal, Canada, impacting approximately 1,900 warehouse workers and 2,800 delivery contractors after a labor dispute at one of its last-mile facilities. Marc Wulfraat, president and founder of logistics consulting firm MWPVL International, stated that Amazon's actions serve as a message to other regions. "Amazon will retaliate, because it has to send a firm message to the rest of the country that 'If you mess with us, this is what will happen,'" Wulfraat said. "When you look at Amazon’s global operations, they close buildings left, right and center when there is union activity."

The Delivery Protection Act, originally introduced a year prior and reintroduced in 2026, has significant support within the City Council. However, some council members, including Speaker Julie Menin, have expressed reservations about potential job losses. A source close to negotiations indicated that the bill is expected to pass in some form due to mayoral support, but the final version might not satisfy all parties. Discussions have included potential compromises, such as allowing independent contractors to continue deliveries while mandating more safety assurances for workers.

Amazon employs directly or indirectly more than 12,000 hourly workers in New York City, more than double the number in Quebec. The proposed act would not affect the 5,500 workers at Amazon's JFK8 fulfillment center on Staten Island, who unionized in 2022 but are still in the process of negotiating a collective bargaining agreement.

Despite Amazon's legal challenges regarding labor practices in Bessemer, Alabama, and Staten Island, the company maintains that the Delivery Protection Act would negatively impact New York customers. A study commissioned by Amazon suggests the act could cost New Yorkers an additional $664 annually, or approximately $5.20 per package, considering deliveries from various companies. An Amazon spokesperson stated that New York City's complex delivery landscape is best served by local businesses utilizing Amazon's operational infrastructure.

Industry experts, like Brittain Ladd, a logistics and retail consultant and former Amazon executive, believe Amazon would close its New York facilities if the legislation threatened its business model, particularly as it could set a precedent for other cities. The owners of independent delivery companies fear becoming collateral damage, potentially facing business closure and job losses for their employees. Joe Artus, owner of WGA Transit, which employs 189 workers, expressed concern that the bill's passage would make it impossible for his company to operate.