E-commerce giant Amazon is set to slash 370 positions at its European headquarters in Luxembourg, marking the largest single corporate layoff in the country in at least two decades.

The move extends Amazon’s global workforce reductions following its October announcement of 14,000 corporate job cuts, impacting areas such as logistics, payments, cloud computing, and video games. While modest by Amazon’s worldwide scale, the Luxembourg layoffs—representing around 8.5 per cent of the 4,370-strong workforce—carry significant local weight.

Largest layoff in two decades

Reports indicate the initial plan was to cut 470 roles, but negotiations with employee representatives, as required under European Union labour laws, reduced the figure to 370. A member of the employee delegation told Bloomberg that affected staff are expected to be notified in February.

Local unions noted this is the largest corporate job reduction in Luxembourg since 2006, when electronics firm TDK laid off 344 employees. Most affected workers are foreign nationals from the US, India, Australia, Egypt, and Tunisia, who have three months to secure new employment under Luxembourg’s immigration rules.

Company explanation and severance packages

In a December 12 internal memo, Amazon described the redundancies as “adjustments that reflect business needs and local strategies.” The company added that severance packages would exceed industry standards, and stressed the cuts were part of broader efforts to streamline operations, reduce bureaucracy, and shift resources to key areas.

Beth Galetti, Amazon’s senior vice president of people experience and technology, explained that the reductions are designed to strengthen the company and enable investment in its “biggest bets,” with further layoffs expected alongside selective hiring in 2026.

AI and the future of Amazon

Despite cutting jobs, Amazon has significantly increased investment in AI in 2025, funneling tens of billions into cloud infrastructure, custom chips, and model development, including potential investments exceeding $10 billion in OpenAI. Amit Agarwal, SVP for India and emerging markets, told Economic Times that removing organisational layers allows Amazon to operate with the agility of a startup in an AI-driven world.

CEO Andy Jassy, meanwhile, emphasised that the global layoffs are not primarily financially or AI-driven. Speaking at a quarterly earnings call, he said the cuts are “culture-driven,” aimed at reducing layers to maintain ownership and accountability among employees, while ensuring the company remains lean and efficient.

Local and global impact

The Luxembourg layoffs underscore the tension between the country’s status as a tech hub and the volatility tied to corporate restructuring. Amazon has long benefited from Luxembourg’s low-tax environment, reporting €70.4 billion in European e-commerce sales last year. For employees who relocated to the Grand Duchy, the cuts pose immediate challenges, highlighting the human side of large-scale corporate reshuffles.