Amazon could shut down all 15 of its last-mile delivery warehouses in New York City and eliminate as many as 7,000 jobs if a labor proposal supported by Mayor Zohran Mamdani becomes law, according to industry specialists who believe the online retail giant is prepared to carry out its warning rather than abandon its longstanding business model.
The proposed Delivery Protection Act would require Amazon to directly employ approximately 5,000 delivery drivers who currently work for independent contractors. Supporters argue that the legislation would provide stronger workplace protections, better compensation and improved safety standards for employees of major delivery companies, including Amazon, FedEx and DoorDash.
Amazon, however, has warned that the measure could force it to dismantle its existing delivery network within the five boroughs. In addition to the 5,000 drivers whose jobs could be affected, approximately 2,000 employees working at the company’s 15 local distribution facilities could also face layoffs if those locations close.
Industry analysts say the company’s record of responding aggressively to labor disputes suggests that its warnings should be taken seriously, particularly because Amazon has never directly employed its delivery drivers under this model anywhere else in the United States.
One example frequently cited by logistics experts is Amazon’s withdrawal from Quebec, where the company closed seven warehouses in early 2025 following a labor dispute at one of its facilities.
The conflict centered on a warehouse in Laval, near Montreal, where approximately 300 employees had organized under the Confédération des syndicats nationaux, known as CSN.
By March 2025, the shutdowns had resulted in the elimination of roughly 1,900 warehouse positions and affected another 2,800 workers employed by delivery contractors serving those locations.
Marc Wulfraat, founder and president of Montreal-based logistics consulting company MWPVL International, said Amazon’s actions in Canada offer a warning about what could happen in New York.
“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,’” Wulfraat said.
“When you look at Amazon’s global operations, they close buildings left, right and center when there is union activity.”
Wulfraat said Amazon continues to pay rent on more than 1.6 million square feet of now-vacant warehouse space in the Montreal area, despite having invested hundreds of millions of dollars in constructing and outfitting the facilities. Real estate advertisements indicate that at least two of those properties are being marketed for sublease.
The New York proposal was originally introduced by Queens Council Member Tiffany Cabán last year and brought back before the City Council in 2026. It currently has approximately 34 co-sponsors, giving it considerable legislative support.
Nevertheless, concerns about widespread job losses have complicated negotiations, including among council members who otherwise support stronger labor protections.
A person familiar with the discussions said several lawmakers, including City Council Speaker Julie Menin, are “uncomfortable” with the possibility that the legislation could cost thousands of New Yorkers their jobs.
“This bill will have to pass in some form,” the source said, pointing to Mamdani’s support for the measure.
The source suggested that negotiations could ultimately produce an agreement leaving “both sides unhappy.”
Among the possible compromises being considered is an arrangement under which Amazon could continue relying on independent delivery contractors while accepting additional obligations to protect drivers’ safety.
No date has been established for a City Council vote.
Amazon currently employs or supports more than 12,000 hourly positions in New York City, more than double the number of workers affected by its Quebec warehouse closures.
The approximately 7,000 jobs connected to its last-mile delivery network represent only part of that workforce.
Another 5,500 employees work at the company’s JFK8 fulfillment center on Staten Island, where workers voted in 2022 to establish the first union at an Amazon facility in the United States. Despite that vote, the employees have yet to secure a collective bargaining agreement.
The Delivery Protection Act would not directly apply to those Staten Island warehouse workers.
Amazon has faced numerous labor organizing battles in recent years, particularly at its American facilities, even as the company operates with unionized employees in parts of Europe.
The company remains involved in legal proceedings concerning its responses to organizing campaigns in Staten Island and Bessemer, Alabama.
In April, the National Labor Relations Board directed Amazon to begin negotiations with the Teamsters on Staten Island. Amazon has challenged the labor board’s authority and legitimacy through litigation.
The Teamsters, which support stronger protections for delivery workers, accused Amazon of attempting to avoid responsibility for the people who perform work on its behalf.
“Amazon will say or do whatever it takes to deny workers stronger rights and wages and abdicate its responsibilities for its own employees,” the union said.
For the approximately 40 independent delivery businesses operating within New York City, the controversy presents a potentially existential threat.
Those companies collectively employ approximately 5,000 drivers whose livelihoods depend on contracts to deliver Amazon packages.
Kris Basmagy, who owns DashWave Delivery and oversees Amazon deliveries on Manhattan’s Upper East Side, warned that the company could simply relocate its distribution network beyond city limits.
“Look at what happened in Quebec,” Basmagy said. “There was pressure on Amazon’s model, and it pulled out.”
Basmagy, whose business employs approximately 150 drivers, noted that Amazon could shift operations to the numerous “warehouses being built along the New Jersey Turnpike.”
Such a move would allow the retailer to continue serving New York customers from facilities outside the city, although delivery times and operating costs could change.
Amazon has denied that its Quebec closures were retaliation for union organizing, and the dispute remains the subject of proceedings before Canadian labor authorities.
CSN filed a complaint with Quebec’s labor tribunal challenging the shutdowns. Even if the union succeeds in establishing that Amazon violated labor laws, the company could face financial penalties and damage to its reputation rather than being compelled to reopen its warehouses.
The closures also prompted legal action from customers who claimed that the disruption interfered with the expedited shipping benefits they had purchased through Amazon Prime.
A class-action lawsuit filed by a Quebec Prime subscriber in February 2025 alleged that delivery promises of one or two days were replaced, in some instances, by waits of four to six days.
A Quebec court permitted the lawsuit to move forward in May.
The plaintiffs acknowledged that the worst service interruptions lasted approximately two months, while Amazon maintained that its delivery performance recovered after Canadian logistics company Intelcom assumed responsibility for local distribution.
“Then they got their act together and stopped the delays,” said Saro Turner, a partner at Slater Vecchio, the law firm representing the plaintiffs.
Amazon has argued that the consequences for New York consumers would extend beyond employment, potentially increasing delivery costs and slowing shipments throughout the five boroughs.
The company financed an economic analysis conducted by AKRF estimating that the legislation could impose an additional $664 in annual expenses on the average New York household, equivalent to approximately $5.20 per package.
That projection includes deliveries by companies other than Amazon, such as FedEx and DoorDash, and reflects assumptions about the wider impact of the proposed requirements. It remains a company-sponsored estimate rather than an established cost increase.
Amazon spokesperson Steve Kelly said the New York delivery market is considerably larger and more complicated than the company’s former Quebec operation.
He described New York as “fundamentally different” from Quebec, where Amazon maintained “far fewer sites.”
“New York City is one of the largest and most complex delivery regions in the country,” Kelly said. “It’s best served by a network of local small businesses deeply embedded in their communities and leveraging our operations infrastructure.”
A person familiar with Amazon’s distribution system said closing its city warehouses would likely have the greatest impact on customers accustomed to receiving purchases within hours.
Same-day and early-morning deliveries could become significantly less available, while fewer products might qualify for the expedited shipping benefits offered through Amazon Prime.
“There are a lot of same-day and same-morning deliveries in the city” that could arrive the next day, the source explained.
Amazon’s New York distribution network includes facilities throughout Brooklyn, Queens and Manhattan, with warehouses in Red Hook at 270 Richards Street and Maspeth at 55-15 Grand Avenue.
The company also operates an approximately 87,000-square-foot last-mile distribution facility at 706 Eleventh Avenue in Manhattan, according to a report examining delivery-related safety concerns issued by City Comptroller Mark Levine.
Brittain Ladd, a retail and logistics consultant who previously worked as an Amazon executive, said the company could view the New York legislation as a threat extending far beyond the five boroughs.
“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,” Ladd said. “This is about a model that could be copied in other cities.”
Supporters of the legislation reject the argument that the prospect of closures should prevent the city from establishing stronger worker protections.
When Mamdani formally endorsed the measure in August, his administration argued that the current subcontracting system allows major delivery companies to exercise extensive control over drivers while avoiding direct responsibility for their working conditions.
The administration also cited traffic safety concerns surrounding last-mile warehouses. A 2025 city comptroller’s report found that 78% of areas examined near such facilities experienced increases in crashes causing injuries after the warehouses opened.
The proposed law would establish city licensing requirements for certain distribution facilities, impose additional safety and training standards and require companies operating those facilities to assume direct responsibility for workers performing essential delivery functions.
Cabán and labor organizations supporting the bill maintain that the changes are necessary to improve conditions for workers and protect pedestrians and motorists on New York streets.
Independent delivery company owners, however, say they fear becoming casualties of a confrontation between city officials and one of the world’s largest corporations.
“There is a laser focus on punishing Amazon no matter what the repercussions might be, what it does to us as business owners, fathers and husbands,” Basmagy said. “It’s as if we no longer exist.”
Among the businesses facing an uncertain future is WGA Transit, a Harlem-based delivery company that has made a particular effort to provide employment opportunities to people who were previously incarcerated or experienced homelessness.
Its owner, Joe Artus, said the legislation in its current form would make it impossible for his company to continue operating.
Artus, whose business employs 189 people, described the personal and financial consequences he fears if the measure becomes law.
“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.”