Amazon is preparing to lay off 370 employees at its European headquarters in Luxembourg, a move that could force Indian and other non-EU staff to leave the country. The job cuts, representing approximately 8.5% of Amazon's 4,370-person workforce in Luxembourg, are the largest the company has undertaken in the country in the last 20 years.
The layoffs are part of a broader global restructuring effort by Amazon, which includes a previously announced plan to eliminate 14,000 corporate positions. Amazon's decision is driven by adjustments that reflect business needs and local strategies. The company is also investing heavily in generative AI, which has led to restructuring impacting software developer roles.
The situation poses significant challenges for foreign workers, particularly those from countries like India, the United States, Australia, Egypt, and Tunisia. Under Luxembourg's immigration laws, non-EU workers who lose their jobs typically have just three months to secure new employment within the country or face having to leave. Prash Chandrasekhar, a member of the Amazon employee delegation, expressed concerns that some employees would be forced to leave Luxembourg, as finding new jobs for 370 people simultaneously entering the market would be difficult.
Amazon initially intended to cut 470 jobs in Luxembourg but reduced the number to 370 after negotiations with employee representatives, as mandated by European Union labor laws. These laws require companies to consult with employee delegations before implementing large-scale redundancies. While details of the compensation packages remain confidential, a staff delegation representative stated they "compare favorably" to other social plans in Luxembourg. Amazon has stated that the termination package goes well beyond industry benchmarks.
The layoffs are expected to primarily affect software developers, which aligns with the broader trend of technology companies automating coding and routine engineering tasks using AI tools.
Despite the job cuts, Amazon remains a major employer in Luxembourg, and the company has not announced any changes to its presence in Luxembourg City's Kirchberg district. Luxembourg remains a vital partner for Amazon in Europe.
