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

Amazon has issued a warning that it could eliminate over 5,000 delivery jobs and close several warehouses in New York City if a new labor bill, championed by Mayor Zohran Mamdani, becomes law. Industry experts predict Amazon is likely to follow through on this threat, citing their history of shutting down facilities in other regions when faced with unionization efforts.

The proposed legislation would require Amazon to directly employ the majority of its delivery drivers currently working as independent contractors, aiming to increase wages and enforce safety standards. However, Amazon has not directly employed delivery couriers in other US locations and has resisted similar labor changes in the past.

If the legislation passes, Amazon may not only cut 5,000 contracted delivery roles, but also shut down all 15 of its last-mile fulfillment centers in NYC, putting 2,000 internal warehouse workers out of a job. This move would be reminiscent of Amazon's decision to close seven Montreal warehouses last year following a union drive, resulting in the loss of about 1,900 warehouse jobs and 2,800 third-party delivery driver contracts.

Logistics consultants warn that Amazon will send a strong message to other cities that if they challenge Amazon, it will retaliate by closing facilities. The legislation would also put the 40 independent delivery service partners that currently employ New York City's 5,000 Amazon delivery drivers at risk of being eliminated overnight.