New Delhi: Global technology major Amazon has announced its largest-ever round of layoffs at its European headquarters in Luxembourg, confirming that 370 employees will be let go in the coming weeks. The job cuts account for around 8.5% of the 4,370-strong workforce based at the facility.
The move is being seen as part of Amazon’s broader AI-driven restructuring strategy and follows the company’s October 2025 announcement of 14,000 global job cuts aimed at streamlining operations and accelerating investments in artificial intelligence.
Social Plan Finalised After Two Weeks of EU-Mandated Talks
According to the Luxembourg Times, the decision follows two weeks of mandatory negotiations between Amazon management and employee representatives, as required under European Union labour laws for large-scale redundancies.
Amazon had initially proposed eliminating 470 positions, but the number was reduced to 370 following discussions with staff delegates. Commenting on the outcome, employee representative Prash Chandrasekhar said, “370 is still a very large number, but considering where we started, it feels marginally better. Even so, it will place significant pressure on Luxembourg’s job market.”
Software Developers Bear the Brunt of AI-Led Reorganisation
As per a Bloomberg report, software developers are expected to be the most affected by the layoffs. Across the global tech industry, the increasing deployment of AI tools for coding, testing and development has begun to reduce the need for traditional developer roles.
An Amazon employee told Bloomberg that hundreds of professionals entering Luxembourg’s labour market simultaneously would find it difficult to secure alternative employment, particularly given the country’s population of around 680,000. Employees who relocated from other countries face an added challenge, with a three-month deadline to find new jobs before being required to leave the country.
Layoffs to Take Effect from February; Compensation Details Confidential
The layoffs will come into effect from February 2026. While specific compensation details have not been disclosed, staff representatives indicated that the agreed packages compare favourably with other social plans implemented in Luxembourg.
In a statement, an Amazon spokesperson said, “Our immediate focus will be on implementing the agreed measures and providing support to impacted employees throughout this transition.”
Luxembourg to Remain a Strategic Hub Despite Workforce Reduction
Despite the job cuts, Amazon has reiterated that Luxembourg will continue to play a central role in its European operations. The company remains Luxembourg’s fifth-largest employer.
In November, Luxembourg Prime Minister Luc Frieden met Amazon CEO Andy Jassy in Seattle, where Jassy assured him that Luxembourg would remain Amazon’s strategic partner in Europe, according to reports cited by the prime minister’s office.
Balancing Cost-Cutting with Aggressive AI Investment
The latest layoffs form part of CEO Andy Jassy’s broader effort to make Amazon leaner, faster and less bureaucratic, while simultaneously stepping up investments in generative AI. Following a pandemic-era hiring surge, Amazon had already eliminated 27,000 jobs globally between 2022 and 2023.
The company has also clarified that hiring in key strategic roles will continue. Amazon currently lists 56 open positions in Luxembourg, underlining its intent to retain a long-term presence in the country despite the ongoing workforce rationalisation.
