Amazon Plans Another Round of Job Cuts

Amazon, the e-commerce giant, is reportedly considering another round of job cuts that could affect around 5,000 delivery workers in New York City. Media reports also suggest that the company may shut down 15 warehouses in the city, with the possibility that more facilities could be affected. The reported move may be linked to the proposed Delivery Protection Act, which is backed by New York City Mayor Zohran Mamdani. If the legislation becomes law, Amazon could be required to make significant changes to its delivery operations. However, the company has not officially confirmed the reported layoffs or warehouse closures.

Amazon relies on third-party contractors to manage much of its delivery workforce instead of directly employing delivery drivers. Reports suggest that if the proposed Delivery Protection Act is approved, the company may need to change its existing delivery model and directly employ more than 5,000 delivery workers currently working through around 40 third-party contractors. The potential increase in operating costs could prompt Amazon to consider workforce reductions and warehouse closures. If these measures are implemented, they could also lead to longer delivery times and higher service prices across New York City. The actual impact will depend on the final legislation and Amazon's subsequent decisions.