Amazon threatens to pull 5,000 delivery jobs out of New York City over Mamdani's bill

Amazon has warned it could shut down more than a dozen warehouses and move thousands of delivery jobs out of New York City over the Delivery Protection Act, a labour bill championed by Mayor Zohran Mamdani. Industry analysts caution that the retail giant is very likely to follow through on the threat if the legislation passes, pointing to a recent decision where the company shuttered facilities in Canada rather than compromise on its logistics model.

The proposed legislation would mandate that Amazon directly employ upwards of 5,000 delivery drivers across the five boroughs who currently work for independent third-party contractors. Supporters argue the policy will raise wages and enforce critical safety standards across delivery providers, including FedEx and DoorDash.However, Amazon does not directly employ delivery couriers anywhere else in the US and has historically pushed back aggressively against structural changes to its labour arrangements.

According to a US media report, experts warn the standoff could lead Amazon to not only pull those 5,000 contracted delivery roles out of the city, but also shut all 15 of its last-mile fulfillment stations across New York City, eliminating the jobs of 2,000 internal warehouse workers who staff them.

The Canada precedent: Amazon closed warehouses over unionisation

Citing logistics analysts, the report says that Amazon has already demonstrated a willingness to abandon major municipal markets rather than alter its operational blueprint.

Early last year, the company permanently closed seven warehouses around Montreal, Quebec, following a union drive at its Laval facility organised by the Confédération des syndicats nationaux (CSN).By March 2025, that standoff led to the elimination of roughly 1,900 warehouse jobs and the termination of contracts for 2,800 third-party delivery drivers."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'.

When you look at Amazon's global operations, they close buildings left, right and center when there is union activity," said Marc Wulfraat, president and founder of logistics consulting firm MWPVL International.In Montreal, Amazon continues to pay rent on more than 1.6 million square feet of vacant commercial space that cost hundreds of millions of dollars to build, with at least two sites listed for sublease. Former Amazon executive and logistics consultant Brittain Ladd warned that New York City could face an identical outcome:"Amazon wouldn't blink about shutting down the 15 facilities in New York City if it felt that the legislation was a threat to its business model.

This is about a model that could be copied in other cities."

Amazon's delivery partners in New York City fear being wiped out

The fallout from the legislation poses an immediate threat to the 40 independent delivery service partners that employ New York City's 5,000 Amazon delivery drivers. Many small business owners say they would be wiped out overnight.DashWave Delivery owner Kris Basmagy, whose 150 employees handle Amazon deliveries across Manhattan's Upper East Side, pointed to Canada as a cautionary tale: "There was pressure on Amazon's model, and it pulled out."

Basmagy added that Amazon could easily relocate distribution hubs to "warehouses being built along the New Jersey Turnpike."WGA Transit founder Joe Artus, whose firm employs 189 drivers in Harlem, actively recruiting formerly incarcerated and unhoused individuals, said the mandate would force him to shut down entirely. "I have a 21-month-old daughter," Artus said. "If this thing passes, there is no way for my company to exist or to keep my 189 employees."