Amazon Slashes 370 Technical Roles at European HQ

E-commerce giant Amazon has confirmed it will slash 370 positions at its European headquarters in Luxembourg.

This decision, finalized in mid-December 2025, represents approximately 8.5% of its 4,370-strong workforce in the Grand Duchy.

The layoffs are the largest single corporate redundancy the country has seen in two decades, signaling a stark shift in the relationship between the tech titan and its primary European hub.

Strategic Downsizing at Amazon and AI Integration

The job cuts are a localized extension of Amazon’s global “leaner and less bureaucratic” initiative led by CEO Andy Jassy.

In October, the company announced a target of 14,000 global job losses as it pivots toward artificial intelligence and automation.

At the Luxembourg headquarters, software developers and technical roles are expected to bear the brunt of the cuts.

Internal memos suggest that as AI takes on more routine coding and administrative tasks, the need for human oversight in these specific areas has diminished, allowing the company to redirect capital toward “high-growth” AI infrastructure.

Navigating European Labor Protections

The final figure of 370 was reached only after intense negotiations with local labor unions, including the OGBL and LCGB.

Amazon had initially proposed a higher reduction of 470 roles, but European Union labor laws mandated a consultation period with employee representatives.

While the “social plan” signed on December 12 includes severance packages described as being “well beyond industry benchmarks,” union leaders expressed concern over the timing.

The last comparable layoff in Luxembourg occurred in 2006, making this a historic blow to the local labor market.

The Human Impact in a Hub Nation

Luxembourg’s small population and status as a destination for international talent make these cuts particularly complex.

Many affected employees are foreign nationals from countries like India, the U.S., and Australia.

Under local immigration rules, non-EU workers typically have only three months to secure a new role or face the prospect of leaving the country.

With hundreds of highly specialized workers entering the job market simultaneously, fears are mounting that the local ecosystem may struggle to absorb the surplus talent.

Amazon Layoffs: Outlook for the Future

Despite the layoffs, Amazon remains Luxembourg’s fifth-largest employer.

Prime Minister Luc Frieden recently met with Andy to reinforce the country’s status as a “strategic partner.”

However, with the company indicating that further “adjustments” may occur in 2026, the era of unchecked headcount expansion at its European base appears to have concluded in favor of an AI-driven efficiency model.

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