# Amazon Threatens NYC Job Cuts Over Proposed Delivery Protection Act Proposed labor legislation in New York City risks triggering widespread Amazon facility closures and layoffs. - **Source:** [mint - companies](https://www.livemint.com/rss/companies) - **Published:** 2026-10-19 - **Topic:** [Business](https://brifing.si/c/business) - **Original article:** - **On Brifing:** https://brifing.si/s/2c603b51-8e0c-4de8-be2f-c45c326e5fb9 ## Legislative Clash in New York Amazon has warned that it may eliminate over 5,000 delivery jobs and shutter 15 last-mile facilities in New York City. This threat follows the introduction of the Delivery Protection Act, backed by Mayor Zohran Mamdani. The bill aims to mandate that Amazon directly employ thousands of drivers currently managed through independent third-party contractors. ## Logistics Model Under Scrutiny The proposed legislation directly challenges Amazon’s reliance on a network of 40 independent contractors across the city’s five boroughs. By requiring direct employment, the law forces the e-commerce giant to reconsider its core logistics strategy. Amazon maintains that its current model is essential for managing complex, high-volume delivery operations throughout the urban environment. ## Broader Impact on Workforce The potential closures extend beyond delivery drivers, threatening approximately 2,000 warehouse employees. If Amazon proceeds with its plan to withdraw from the city, the total job losses could significantly exceed the initial estimates. The company has suggested it might relocate operations to facilities outside the city, such as locations along the New Jersey Turnpike. ## Economic Consequences for Consumers Amazon argues that closing its city facilities will inevitably lead to longer delivery times and increased costs for local customers. An internal study suggests the legislation could cost New Yorkers an additional $664 annually, or roughly $5.20 per package. Same-day and early-morning delivery services are expected to be the most significantly impacted offerings. ## Precedent of Facility Closures This situation mirrors Amazon’s actions in Quebec, Canada, where the company closed seven warehouses following a unionization drive at its Laval facility. That move affected 1,900 warehouse workers and 2,800 contracted drivers. Labor advocates in New York fear that the company may prioritize market withdrawal over accepting changes to its established employment arrangements. ## Contractor and Industry Concerns Independent businesses operating Amazon’s delivery services have expressed concern regarding the proposed law. These contractors warn that a forced shift in the operating model could threaten their business viability and the jobs they currently support. Negotiations remain ongoing, as no formal vote has been scheduled for the bill, leaving room for potential legislative adjustments. ## Global Context of Layoffs The New York dispute coincides with Amazon’s global workforce reductions and a strategic pivot toward AI infrastructure. The company recently cut nearly 1,000 jobs across retail teams in India, the US, and the UK. Meanwhile, Amazon is preparing to invest a record $220 billion in data centers and chips to bolster its artificial intelligence capabilities. ## Path Toward Potential Compromise The final outcome depends on the specific wording of the legislation and the willingness of both parties to negotiate. A possible compromise could involve maintaining the contractor model while implementing stricter guarantees for worker safety and conditions. New York officials face the challenge of improving labor standards without driving away a major employer. ## Sources covering this story - https://www.livemint.com/companies/why-is-amazon-threatening-to-axe-5-000-delivery-jobs-over-zohran-mamdani-s-labour-law-in-new-york-what-govt-can-do-11792425972957.html — --- _Summary written by Brifing from the original reporting. Copyright in the original article belongs to its publisher; read the full piece at the link above._