Amazon Cuts 370 Jobs at Luxembourg Hub in Nation's Largest Layoff in Decades

Amazon Cuts 370 Jobs at Luxembourg Hub – Image Credits: Amazon

Amazon.com Inc. plans to lay off 370 employees at its European headquarters in Luxembourg in the coming weeks, a move that accounts for about 8.5% of the 4,370 workers based there and stands as the country's biggest workforce reduction in at least two decades.

These Amazon Luxembourg cuts stem from the company's global effort to eliminate 14,000 positions and redirect resources toward artificial intelligence (AI) initiatives.

Negotiations with employee representatives, required under European Union labor rules, led to a reduction from an initial proposal of 470 jobs.

Software developers face the most significant impact from the layoffs, as tech firms turn to AI for coding work.

Foreign workers from nations such as India, the U.S., Australia, Egypt and Tunisia hold many of the affected roles and now confront a three-month window to secure new employment or depart Luxembourg to retain residency status.

“I am almost sure some employees will have to leave,” Prash Chandrasekhar, a member of the Amazon employee delegation, said in an interview.

Amazon has committed to compensation packages that surpass industry standards and local agreements.

The redundancies reflect adjustments to business needs and local strategies, according to a company memo to staff dated Dec. 12. Notifications to most impacted workers will occur in February.

Amazon lists 56 open positions in Luxembourg on its careers site and intends to hire selectively in strategic areas.

Luxembourg Prime Minister Luc Frieden met with Amazon CEO Andy Jassy in Seattle last month and received assurances that the nation remains a vital European partner for the company.

The last comparable job cuts in Luxembourg happened in 2006, when a Japanese electronics firm closed a factory and eliminated 344 positions.

Amazon established operations in Luxembourg in 2003 and ranks as the country's fifth-largest employer even after the reductions.

“Our immediate focus will be on implementing the agreed measures and providing support to impacted employees throughout this transition,” an Amazon spokesperson said in a statement.