Industry Odisha Bureau, Oct 20: Amazon is threatening to axe 5,000-plus delivery jobs over a proposed New York labour law. The bill would force it to employ drivers directly, not through contractors.
Amazon has warned it could cut more than 5,000 delivery jobs in New York City. It could also close 15 last-mile facilities across the city, the New York Post reported. The trigger is a proposed labour law called the Delivery Protection Act. No closures have been announced, and no council vote has been scheduled.
Councilmember Tiffany Cabán introduced the bill, Int 0518-2026, in February. Mayor Zohran Mamdani endorsed it in August. It would require Amazon to employ its city drivers directly. Operators of last-mile facilities would also need a city business licence. Supporters say direct employment would strengthen worker protections and accountability.
The bill strikes at the heart of Amazon’s US delivery model. Amazon does not usually employ its van drivers directly. Instead, independent businesses, called delivery service partners, hire and manage them. In New York, more than 40 such firms employ over 5,000 drivers. Direct employment would shift wages, scheduling and liability onto Amazon itself.
Amazon’s possible response extends beyond drivers. Closing 15 stations could put another 2,000 warehouse jobs at risk. Combined, more than 7,000 positions could be exposed. Last-mile stations are the final sorting hubs before parcels reach doorsteps. Amazon could instead serve the city from sites outside, including along the New Jersey Turnpike. Longer routes could slow same-day and early-morning deliveries.
Amazon also argues that customers would pay more. A study it funded estimates the bill could cost households an extra $664 a year. That equals about $5.20 per package, including other companies’ deliveries. The estimate comes from Amazon-funded research, not an independent assessment. Some contractors fear the bill could wipe out their businesses.
Labour advocates point to Quebec as a warning. Amazon shut seven warehouses there last year after a union drive at its Laval site. The closures affected about 1,900 warehouse staff and 2,800 contracted drivers. Amazon has denied any link between the closures and unionisation.
A compromise remains possible. Contractors could keep handling deliveries, while Amazon offers stronger safety and working-condition guarantees. Much will depend on how strictly the final text mandates direct employment. Logistics analysts cited by the Post say Amazon could follow through if it passes. The Teamsters, who back the bill, say Amazon spent over $5 million opposing it.
The dispute unfolds amid wider changes at Amazon. It recently cut just under 1,000 jobs, mainly in retail teams. Those cuts spanned India, the United States and the United Kingdom. Broader layoffs could affect around 30,000 roles, according to reports. Meanwhile, Amazon plans a record $220 billion spend on data centres, chips and AI. These moves are separate from the New York delivery fight.
For New York, the challenge is clear. It must improve conditions for delivery workers without driving a major employer away.
