E-commerce giant Amazon is considering cutting around 5,000 delivery jobs and closing 15 last-mile warehouses in New York City under a labour law backed by Mayor Zohran Mamdani. As the labor dispute could take place for thousands of people who work in the city’s delivery industry, it has created concerns among delivery workers, contractors and labour advocates.
The Delivery Protection Act, which is to be passed and which would have workers directly employed in the city, says it will require big delivery companies to hire workers instead of using third-party contractors. The retailer has vehemently opposed the bill (and is warning that it will have to rethink its operations in the city). Any job cuts and warehouse closings, but not necessarily a company decision, are still speculation, said one source close to the company.
The Delivery Protection Act is intended to change how companies that employ contracted delivery workers work with the people who do it. A large number of people drive for independent delivery service partners in Amazon's current model and are not directly employees of the company. Supporters of the bill say more workers in direct employment would increase wages, reinforce workplace protections and enhance accountability for working conditions.
The plan has been backed by Mayor Zohran Mamdani and members of the New York City Council. Labour advocates say the change would help workers to be more secure and will make sure that online orders get to customers on time. Amazon and other delivery companies would face additional expenses and major changes to their business relationships if the legislation is implemented if it becomes law.
Amazon's warning may also be about 5,000 jobs that already are in place with its contractor-based service provider network in New York City. The company could also close all 15 last-mile delivery warehouses in the city. The warehouses are at the heart of the delivery process and take care of parcels before they are delivered to customers. And the losses could affect around 2,000 additional workers in the warehouse operations as well.
If implemented, such changes could have an impact beyond Amazon's operations, as well as independent delivery firms and their employees. Many contractors rely on Amazon for their delivery services for business on Amazon's delivery network, and a big reduction in local operations from a major loss of local operations could put pressure on their income and employment arrangements.
The dispute is emblematic of a broader clash between the gig economy’s employment model and efforts to improve labour rights. Large delivery companies rely on third-party drivers, vehicles and day-to-day delivery services to run their operations. This allows businesses to expand or modify delivery capacity according to demand.
But they say that contracted workers may not have the same employment protection, benefits or job security as those directly employed. Many of these issues are addressed in the proposed New York legislation by changing the way delivery workers are employed. Amazon, however, is faced with the challenge of maintaining a cost-effective delivery network while also responding to regulations that could have an impact on its business structure.
The situation has also attracted attention because Amazon has previously had labour disputes around its warehouse business. In Canada, the company closed seven warehouses in Quebec in 2025 over a labour dispute and this resulted in thousands of jobs lost. Labour groups criticized the closure, but the company defended its operations.
Some said the Canadian experience showed that Amazon could take significant steps to adapt its logistics system if labour or regulatory issues were to arise. However, the Quebec closures were different from the proposed legislation in New York, and the outcome of the current dispute is uncertain.
For New York City, the effects could not only be felt by the workers who work directly at the site. A reduction in the number of delivery centres would mean changes to how parcels are delivered, and how delivery routes and staff will be handled. Small businesses that depend on Amazon’s logistics network could also be at risk if operations are reduced.
Delivery speed and service availability may not be addressed in such a way and when and how if there are alternative arrangements between suppliers would be impacted. Independent delivery contractors could be especially vulnerable if the company has to abandon the current network. But the law would make stronger job protections inevitable, and better job protection would not be enough if it was only to protect the existing business model of a company.
The next big change would depend on the progress of the Delivery Protection Act and Amazon’s response to any final legislation. If the proposal is approved, the company will have to decide what it will do to meet the new requirements, negotiate changes or reorganise parts of its New York operations.
City officials and labour representatives will also face pressure to balance worker protections with the economic consequences of warehouse closures and job losses. And as it stands today, 5,000 delivery jobs and 15 warehouses are a possible outcome, not a full restructuring. The dispute is also a big test for how large e-commerce companies react when local governments want to strengthen employment protections in the delivery industry.
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