Amazon is set to reduce its workforce in Luxembourg by 370 employees in the coming weeks, marking the largest round of layoffs in the country in over two decades. This move comes as part of the tech giant’s broader global restructuring strategy aimed at simplifying operations, reducing costs, and reallocating resources toward high-priority areas like artificial intelligence and long-term growth.

Luxembourg serves as one of Amazon’s major European hubs, employing roughly 4,370 people. The upcoming job cuts represent nearly 8.5% of its local workforce. Despite the reductions, Amazon will remain one of Luxembourg’s largest private-sector employers.

Global Restructuring and Local Impact

The planned layoffs in Luxembourg are linked to Amazon’s global goal of cutting approximately 14,000 jobs worldwide. The company emphasized that the decision is strategic and operational rather than performance-based. Initial plans for 470 job cuts were revised to 370 after consultations with employee representatives, as required under European labor laws. Most affected staff are expected to receive formal redundancy notices in February.

The layoffs have triggered concern among employees, particularly foreign nationals from India, the United States, Australia, Egypt, and Tunisia. Non-EU workers must find new employment within three months to maintain their residency, adding pressure to an already competitive job market.

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Employee Consultation and Severance

During the mandatory consultation process, Amazon engaged in discussions with local employee representatives for approximately two weeks. While these discussions slightly reduced the number of job cuts, uncertainty remains high among employees. Amazon has pledged severance packages exceeding standard industry norms, though exact details have not been publicly disclosed.

Union Reactions and Policy Concerns

Trade unions in Luxembourg have criticized Amazon, highlighting the company’s favorable tax benefits and the social implications of sudden workforce reductions. Union leaders argue that such actions conflict with Luxembourg’s strong tradition of worker protections and social dialogue.

Future Outlook

Amazon has indicated that additional job reductions may occur in 2026, even as the company continues hiring for strategic roles aligned with AI and growth initiatives. The current layoffs reflect a broader trend in the global tech sector, where automation, AI, and operational efficiency are reshaping workforce structures and employment patterns.

As Amazon reshapes its operations in Luxembourg and worldwide, employees remain vigilant, navigating an evolving employment landscape shaped by cost discipline, technology-driven transformation, and strategic realignments.