Full Breakdown
Amazon Threatens NYC Warehouse Closures Over Delivery Protection Act
By Drooid · · How we work
Core Event
Amazon has warned that if the Delivery Protection Act—legislation that would require the company to directly hire up to 5,000 citywide delivery workers currently employed by independent contractors—be enacted, it may shut more than a dozen last-mile warehouses in New York City and lay off roughly 2,000 warehouse staff. The threat was outlined by industry analysts and echoed by Amazon’s own spokesperson.
Legislative Push and Quebec Precedent
The bill, first introduced a year ago by Queens Council Member Tiffany Cabán and reintroduced in 2026, enjoys strong backing in the City Council with about 34 co-sponsors, though Speaker Julie Menin has expressed discomfort over potential job losses. Mayor Zohran Mamdani publicly supports the measure. Proponents argue the act will raise pay and safety for delivery workers at Amazon and rivals such as FedEx and DoorDash. Amazon points to its experience in Quebec, where it closed seven warehouses near Montreal after a union organizing drive; the closures affected 1,900 Canadian workers and 2,800 delivery contractors.
Scale of Potential Job Losses
- 5,000 delivery jobs could be moved out of the city.
- 2,000 warehouse workers may be dismissed if facilities close.
- Amazon employs more than 12,000 hourly workers in New York, including 2,000 warehouse staff and 5,000 delivery personnel.
- The 5,500 workers at the JFK8 fulfillment center on Staten Island are not covered by the bill.
- A study funded by Amazon estimates the act would add roughly $664 per New Yorker annually—about $5.20 per package.
Official Positions
The company argues that shutting its facilities would raise delivery costs and slow service. A source close to council negotiations indicated that compromises under discussion might let independent contractors continue deliveries while imposing new safety guarantees on Amazon.
Criticism, Opposition, and Verbatim Quotes
Critics argue the company’s response would punish the broader delivery ecosystem. Logistics consultant Marc Wulfraat warned, “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,’” — Marc Wulfraat, president and founder of Montreal-based logistics consulting firm, MWPVL International . Former Amazon executive Brittain Ladd added, “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,” — Brittain Ladd, a logistics and retail consultant and former Amazon executive . Independent contractor owner Kris Basmagy said, “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,” — Kris Basmagy, owner of DashWave Delivery , noting the risk of being forced out of business. Legal analyst Saro Turner observed that after a Quebec court allowed a class-action suit to proceed, “Then they got their act together and stopped the delays,” “Then they got their act together and stopped the delays,” — Saro Turner . These voices underscore concerns that the act could trigger a cascade of closures beyond Amazon’s own operations.