The layoff of 370 employees represents approximately 8.5% of Amazon’s 4,370-strong workforce in Luxembourg. This marks the largest single job reduction at the site in over 20 years. Initially, Amazon had proposed cutting 470 roles, but the number was scaled back following two weeks of intense talks with the General Luxembourg Workers' Organization (OGBL) and staff delegations.
The Primary Reason: Shifting to AI
The driving force behind this move is the company’s aggressive pivot toward Artificial Intelligence (AI) and a desire to "reduce bureaucracy."
- Software Developers Targeted: Reports indicate that software developers are the most affected group. Amazon is increasingly deploying AI tools to handle coding tasks once performed by humans.
- Streamlining Operations: CEO Andy Jassy has emphasized a "leaner and less bureaucratic" organizational structure, removing management layers to speed up decision-making.
- Post-Pandemic Correction: The cuts are also seen as a correction to the massive "hiring binge" Amazon undertook during the pandemic-era e-commerce boom.
Impact on Foreign Workers
Luxembourg is a small nation with a population of just 680,000, and Amazon is its fifth-largest employer. For the affected employees—many of whom relocated from countries like India, the US, and Australia—the news is particularly dire.
- Immigration Laws: Under local laws, non-EU workers who lose their jobs generally have only three months to find new employment or face deportation.
- Severance Packages: Amazon has stated that the severance packages provided will go "well beyond industry benchmarks," offering a financial cushion during the transition.
More Layoffs Looming?
This reduction is part of a broader global strategy. In October 2024, Amazon announced it would eliminate 14,000 corporate roles worldwide. The company has signaled that further "adjustments" are likely in 2026 as it continues to prioritize investment in generative AI and cloud infrastructure.
