Amazon's Luxembourg hub faces 370 job cuts, the biggest in two decades

Amazon's European headquarters in Luxembourg will see 370 job cuts in the coming weeks, the biggest in over 20 years, as the company trims staff and shifts focus to AI

Amazon’s decision to cut 14,000 jobs globally earlier this year is now having a major impact on its European headquarters in Luxembourg. In the coming weeks, the company is expected to lay off 370 employees there, about 8.5 per cent of its local workforce of 4,370 people, Bloomberg reported.

 

This will be the largest round of job losses in Luxembourg in more than 20 years.

 

A key base for Amazon in Europe

 

Luxembourg, with a population of about 680,000 and an area smaller than Rhode Island, is known as a global financial centre and a low-tax jurisdiction. It offers relatively high wages and low income taxes, making it attractive for multinational firms.

 

Amazon began building its presence there in 2003 and steadily expanded its operations. Even after the layoffs, the company will remain Luxembourg’s fifth-largest employer, highlighting how central the country is to Amazon’s European business, the news report said.

 

Talks under EU labour rules

 

Under European Union labour laws, companies must consult employee representatives and, in some cases, the government before proceeding with mass layoffs. After two weeks of negotiations, Amazon reduced the number of planned job cuts from 470 to 370.

 

Most affected employees are expected to be informed in February, according to Prash Chandrasekhar, a member of the Amazon employee delegation.

 

The redundancies are “adjustments that reflect business needs and local strategies,” Amazon said in a memo to staff on December 12. The company added that the termination package “goes well beyond industry benchmarks”.

 

The job losses are especially difficult for foreign employees who relocated to Luxembourg to work at Amazon. Workers from countries such as India, the US, Australia, Egypt and Tunisia must find a new job within three months to stay in the country, Bloomberg reported.   

 

AI shift and post-pandemic correction

 

In October, Amazon said the global layoffs were aimed at streamlining the company and redirecting resources. The job cuts were designed to “reduce bureaucracy, removing layers and shifting resources to ensure we’re investing in our biggest bets”, including artificial intelligence.

 

The company also said that more layoffs are planned in 2026 and that hiring will be limited to priority growth areas.

 

Luxembourg ties remain strong

 

Despite the layoffs, Amazon has not announced any change to its presence in Luxembourg City’s Kirchberg district, where it leases several buildings. Senior managers there oversee e-commerce, supply chains, engineering and software for Europe.

 

In November, Luxembourg Prime Minister Luc Frieden met Amazon Chief Executive Officer Andy Jassy in Seattle and described the company as a “vital partner” in a LinkedIn post.

 

“Luxembourg’s been an important home for Amazon and our 4,000+ teammates there,” Jassy replied. “Appreciated the discussion and partnership.”

 

Workers warn about AI risks

 

More than 1,000 Amazon employees signed an open letter last month raising “serious concerns” about the company’s rapid push into artificial intelligence, The Guardian reported.

 

The workers warned that Amazon’s “all-costs justified, warp speed” approach could harm “democracy, to our jobs, and to the earth”. They called for clean energy use in data centres, safeguards against harmful AI applications, and greater worker involvement in AI-related decisions.

 

The letter also accused Amazon of “casting aside its climate goals to build AI” and said the company’s emissions have “grown roughly 35 per cent since 2019”, despite its pledge to reach net-zero emissions by 2040.