Amazon is planning to lay off 370 employees at its European headquarters in Luxembourg, representing approximately 8.5% of its 4,370-strong local workforce. This decision marks the company's largest workforce reduction in Luxembourg in over two decades.
The layoffs are a part of Amazon's broader global restructuring, which includes a previously announced reduction of 14,000 jobs worldwide, as the company aims to streamline operations and increase investments in artificial intelligence (AI). Amazon's CEO, Andy Jassy, is spearheading this AI-driven transformation to make the company leaner and more efficient.
The job cuts are expected to primarily affect software developers. The increasing adoption of AI tools for coding and development across the tech industry has reduced the demand for traditional developer roles. Corporate support roles may also be at higher risk as automation replaces routine technical tasks.
Amazon initially planned to cut 470 jobs in Luxembourg, but the number was reduced following negotiations with employee representatives, as mandated by European Union labor laws. These laws require companies to consult with employee representatives before implementing large-scale layoffs.
The layoffs are scheduled to take effect in February 2026. While specific details of the severance packages remain confidential, staff representatives have indicated that they are favorable compared to other social plans implemented in Luxembourg. Amazon stated that it is exceeding industry benchmarks in Luxembourg regarding severance packages.
These job losses pose challenges for foreign employees who relocated to Luxembourg for their positions at Amazon. Under Luxembourg's immigration laws, non-EU workers typically have three months to find new employment or leave the country. An Amazon employee told Bloomberg that it would be difficult for hundreds of people to enter Luxembourg's job market simultaneously.
Despite the layoffs, Amazon is expected to remain one of the largest employers in Luxembourg, which has a population of approximately 680,000. Amazon has invested €11 billion in Luxembourg since 2010 and has 56 open positions in Luxembourg, which indicates the intent to maintain a long-term presence in the country.
According to the Luxembourg Times, Amazon and staff delegates signed a social plan late Friday after two weeks of negotiations. Prash Chandrasekhar, a staff delegation representative, told the Luxembourg Times that while "370 is a very big number," it felt "a little better" considering the initial plans and acknowledged that it would still put pressure on Luxembourg.
These layoffs reflect a broader trend in the technology sector, where companies are focusing on automation, cost control, and AI-driven transformations, which are reshaping employment landscapes worldwide.
