Is Amazon Preparing to Pull Out of New York?

Amazon, one of the United States' largest e‑commerce companies, is considering moving its operations outside the city due to a new labor regulation that has come up in New York. The bill, backed by Mayor Zohran Mamdani, aims to strengthen the rights of delivery workers, while the company's shutdown warning has sparked employment debates in the city.

According to a New York Post story dated October 16, 2026, Amazon said it could terminate the operations of 15 distribution centers in New York if the regulation is enacted in its current form, and might shift part of its operations outside the city.

The law drafted to protect workers has sparked debate.

The regulation, supported by the New York City government and known as the Delivery Protection Act (Delivery Workers Protection Law), aims to secure the rights of workers involved in delivery processes of large e‑commerce companies.

Under the bill, it is expected that large companies such as Amazon will directly employ delivery workers, distribution centers will be subject to stricter oversight, and workers' safety conditions will be improved.

The bill also aims to increase the responsibilities of large companies in delivery services carried out through subcontractors.

However, Amazon argues that the proposed changes will seriously affect the current delivery model.

Concerned About 7 Bin People Losing Their Jobs

According to the assessment presented to the New York City Council by Amazon, the company's delivery network covers more than 40 local subcontractor businesses and over 5,000 employees working in those businesses.

Industry experts point out that about 2,000 people working at distribution centers could also be affected by potential closures.

Thus, it is noted that if operations are moved outside the city after the regulation, the employment of a total of 7 bin people could be at risk.

However, it is emphasized that this figure reflects an estimate related to potential closures, not a finalized layoff decision.

Amazon Delivery Times and Cost Warning

Amazon argues that the new regulation will not only impact its employees but also millions of consumers in New York.

According to the company, moving distribution centers out of the city could lengthen delivery distances, cause orders to reach customers later, and increase logistics costs.

Amazon also argues that the existing system's independent local delivery firms could face economic challenges due to the new hiring model.

Mamdani Administration Not Backing Down

New York City Mayor Zohran Mamdani's administration says the draft ordinance is crucial for protecting workers' safety and rights.

The city administration argues that the responsibilities for workplace safety and working conditions of large companies cannot be adequately monitored due to their subcontractor work model.

The regulation aims to ensure delivery workers operate under safer conditions, clarify employer responsibilities, and enforce stricter oversight of distribution activities.

While the draft is reported to have the backing of 34 members of the New York City Council, the timing of its vote remains unclear.

Eyes on Critical Decision in New York

Amazon's shutdown and relocation warning has revived the debate between workers' rights and employment protection in New York.

On one side is the city administration aiming to improve delivery workers' wages, safety, and working conditions; on the other is Amazon, which argues that the regulation could jeopardize thousands of jobs.

As of October 16, 2026, there is no definitive decision to shut down Amazon's distribution centers in New York. However, if the bill is passed, how the company will respond and how the futures of thousands of employees will unfold is keenly awaited.