Amazon Faces Labor Shortage as Immigrant Workers Lose Jobs Amidst New US Policy

Amazon's warehouses and delivery operations are being affected by the US government's pushback on immigrant labor, with hundreds of workers losing their jobs due to revoked work authorization. The company's Alexa virtual assistant is also facing delays in its web-based version launch, with a new deadline of July 31. Despite these challenges, investors have rallied around the company, raising share prices fractionally in Monday afternoon's trading.

Amazon's warehouses and delivery operations are facing significant challenges due to the US government's pushback on immigrant labor, with hundreds of workers losing their jobs due to revoked work authorization. Additionally, the company's Alexa virtual assistant is experiencing delays in its web-based version launch, with a new deadline of July 31. Despite these challenges, investors have rallied around the company, raising share prices fractionally in Monday afternoon's trading.

The Trump administration's cancellation of humanitarian immigration programs has led to the dismissal of Amazon warehouse workers from countries like Haiti and Venezuela. Several former Amazon staffers who spoke to CNBC said they were dismissed in late June after they couldn't get new work authorizations [1]. Other companies, including Walmart and Disney, have also been forced to fire employees or put them on leave to comply with shifting federal policies [1].

Amazon has begun asking staffers who came to the US under the Biden-era program to provide updated work permits within a certain timeframe or they would be put on unpaid leave. The company has provided impacted employees with information about where to find free or low-cost legal services, access to counseling support, and other resources [1].

The terminations started just as Amazon was gearing up for its annual Prime Day discount blitz, which began on Tuesday and lasts four days. Prime Day is typically one of the busiest periods of the year for Amazon warehouse and delivery employees, alongside the holiday shopping season [1].

Amazon has counted on immigrants to meet a significant part of its staffing needs. In 2022, the company set a goal to hire 5,000 refugees and other forcibly displaced individuals by the end of 2024 [1]. However, the company's reliance on immigrant labor has been disrupted by the government's immigration policies.

The company's Alexa virtual assistant has also faced delays in its web-based version launch. Initially scheduled for a June release, the launch has been postponed to July 31 due to unspecified technical issues [2]. Despite these setbacks, Amazon's stock has shown resilience, with share prices rising slightly in Monday's trading session.

Investors' confidence in Amazon's ability to navigate these challenges and maintain its market position suggests that they believe the company's long-term prospects remain strong. However, the ongoing issues with labor and product launches may continue to present challenges for the company in the near term.

References:
[1] https://www.cnbc.com/2025/07/10/amazon-warehouse-workers-lose-jobs-after-trump-immigration-crackdown.html
[2] https://economictimes.indiatimes.com/tech/technology/unions-says-amazon-prime-day-puts-extra-strain-on-workers/articleshow/122357174.cms