Amazon Announces Biggest Ever Layoffs at Its European Headquarters; These Employees Affected the Most

Amazon is set to eliminate 370 positions at its European headquarters in Luxembourg, marking the most significant job reduction the company has ever undertaken at that location. The cuts, impacting roughly 8.5% of the 4,370-person workforce, primarily target software developers as the company increasingly adopts AI technologies.

The announcement follows Amazon's October declaration of 14,000 global layoffs. After two weeks of negotiations, Amazon and staff representatives finalized a social plan late Friday, according to the Luxembourg Times. Initial plans called for 470 job cuts, but that number was reduced through mandated discussions with employee representatives, as required by European Union labor law.

Software developers will bear the brunt of the layoffs, according to Bloomberg, due to the increasing use of AI in coding. One Amazon employee expressed concern to Bloomberg that a sudden influx of hundreds of job seekers could strain Luxembourg's job market. Employees who relocated to Luxembourg may only have three months to find new employment or face relocation.

Prash Chandrasekhar, a staff delegation representative, told the Luxembourg Times that while the impact remains significant, the final number of layoffs was an improvement from the initial proposal. The layoffs are scheduled to take effect in February. While compensation package details remain confidential, Chandrasekhar indicated they are competitive with other social plans in Luxembourg. An Amazon spokesperson stated that the company will focus on supporting affected employees during the transition and implementing the agreed-upon measures.

Despite the job cuts, Amazon has affirmed its commitment to Luxembourg as a strategic hub in Europe. Luxembourg Prime Minister Luc Frieden met with Amazon CEO Andy Jassy in November, where Jassy assured him of Luxembourg's continued importance to the company's European strategy, according to the Luxembourg Times. Amazon and staff representatives jointly stated that the company will provide a comprehensive support package exceeding industry benchmarks and local agreements. Amazon emphasized its commitment to implementing the plan in full compliance with local employment law.

The Luxembourg reductions are part of a broader cost-cutting effort under CEO Andy Jassy, who aims to streamline the company while investing in generative AI. Between 2022 and 2023, Amazon laid off 27,000 employees globally after a surge in hiring during the pandemic. Amazon currently lists 56 open positions in Luxembourg and plans to continue hiring in key areas despite the layoffs.