Amazon May Axe 5,000 Delivery Jobs, Shut 15 Warehouses In New York City
· Free Press Journal
Amazon could end up reportedly cutting as many as 5,000 delivery jobs in New York City and shutting down 15 warehouses if a proposed city law forcing it to hire its delivery drivers directly is passed. The jobs at stake are not on Amazon's own payroll. They belong to workers employed by outside delivery contractors, and the closures could affect roughly 2,000 more employees. The legislation, called the Delivery Protection Act, has the backing of Mayor Zohran Mamdani, though no date has been set for a vote.
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What the bill demands
The New York Post reported that the proposed law would require Amazon to directly employ more than 5,000 delivery workers who are currently hired by around 40 third-party contractors. Amazon does not employ its delivery drivers itself and relies on these contractors, so the bill would force a complete rethink of its delivery model in the city.
Supporters and critics split
Backers of the bill say direct employment would bring better pay and working conditions for drivers. Critics fear Amazon may respond with job cuts rather than a change in model, and point to its exit from Quebec as a precedent. The report adds that a compromise is possible. Contractors could keep making deliveries, for instance, while Amazon provides stronger safety guarantees.
Contractors fear for their survival
Small delivery firms say the bill could push them out of business. Joe Artus, owner of WGA Transit, reportedly said he sees "no way for my company to exist" if the law passes, putting his 189 employees at risk. His firm hires formerly incarcerated and homeless workers. Contractors also worry that Amazon could move its operations from city facilities to warehouses along the New Jersey Turnpike.
Amazon warns of higher prices
Amazon has argued that shutting the warehouses would mean slower deliveries and higher prices. A study funded by the company estimates the law would cost New Yorkers an extra $664 a year, or about $5.20 per package, counting deliveries by other firms as well. Same-day and same-morning orders would be hit hardest.
The Quebec precedent
Amazon closed seven warehouses in Quebec after a unionisation drive at its Laval facility. About 1,900 warehouse workers and 2,800 contracted delivery workers lost their jobs. The company denies the closures were linked to the union push.
Part of a wider squeeze on jobs
The possible New York cuts come as Amazon trims its workforce globally. It recently cut just under 1,000 jobs, mainly in retail teams in India, the US and the UK, as part of broader layoffs expected to affect about 30,000 roles. At the same time, the company is reportedly preparing to spend a record $220 billion on data centres, chips and other AI infrastructure.