Amazon is preparing to cut around 370 jobs at its European headquarters in Luxembourg, extending its global workforce reductions to one of its most strategically important overseas locations. The layoffs, expected to be implemented in the coming weeks, will affect about 8.5 per cent of the site’s workforce.
Amazon employs roughly 4,370 people in Luxembourg, where it has built a major corporate and operational base over more than two decades. The move forms part of a wider restructuring effort announced earlier this year.
Part of global cost-cutting drive
The Luxembourg job cuts follow Amazon’s plan to eliminate around 14,000 roles worldwide as it looks to streamline costs, reduce layers of management and redirect investments towards artificial intelligence and automation.
According to Reuters, Amazon had initially proposed cutting about 470 roles at the site. This number was reduced after negotiations with employee representatives, as required under European Union labour rules that mandate consultation before large-scale redundancies.
Most affected employees are expected to be formally notified in February. In an internal memo cited in reports, Amazon described the changes as “adjustments that reflect business needs and local strategies” and said severance packages in Luxembourg would exceed local market standards.
Major impact on small economy
While modest by Amazon’s global scale, the layoffs are significant for Luxembourg. Local unions said this could be the country’s largest single corporate layoff in at least 20 years. The last comparable case was in 2006, when electronics firm TDK shut a factory, laying off 344 workers.
Employee representatives have raised concerns that foreign staff could be disproportionately affected. Under Luxembourg’s immigration rules, non-EU workers who lose their jobs typically have three months to secure new employment or leave the country.
Tech roles under pressure
Several employees told Reuters that software developers and technical staff may be among the hardest hit. This reflects a broader trend across the global technology sector, where companies are increasingly using AI tools to automate coding and routine engineering tasks.
Amazon has indicated that further workforce reductions could follow in 2026, while hiring remains focused on priority growth areas.
Wider implications
The decision has renewed scrutiny of Amazon’s long-standing presence in Luxembourg, including its tax structure. Public filings show Amazon EU Sarl reported €70.4 billion in European e-commerce sales last year, offset by expenses that resulted in relatively low taxable profit. Amazon has consistently said it complies with all local and EU tax laws.