Amazon is preparing to cut hundreds of jobs at its European headquarters in Luxembourg. This move marks the company’s biggest workforce reduction at the site so far. Earlier this year, Amazon announced plans to eliminate 14,000 corporate roles worldwide. Recent reports suggest that nearly 370 positions could be cut in Luxembourg alone.
Layoffs to Affect 8.5% of Local Workforce
According to a Bloomberg report, the planned job cuts will impact around 8.5 percent of Amazon’s approximately 4,370 employees in Luxembourg. If implemented, this would be the largest round of layoffs in the country in nearly 20 years.
Amazon operates its European headquarters in the Grand Duchy, a major financial and tax-friendly hub. Over the years, several global technology companies, including Amazon, have benefited from the country’s favourable tax policies.
European Labour Laws Delay Final Decision
European labour regulations require companies to consult employee representatives before announcing layoffs. In some cases, firms must also involve government authorities.
Amazon initially proposed cutting 470 roles. However, after two weeks of negotiations, the company reduced the number to 370. A member of Amazon’s employee delegation told Bloomberg that affected workers will receive formal notifications in February.
Company Cites Business Needs and Local Strategy
In an internal memo dated December 12, Amazon said the layoffs reflect “business needs and local strategies.” The company added that its severance packages exceed industry standards.
However, the cuts could heavily affect employees who relocated to Luxembourg for their roles. Workers from the US, Australia, Egypt, Tunisia, and India may need to find new jobs within three months to remain in the country.
Part of a Broader Global Restructuring
Amazon first disclosed its plan to cut about 14,000 corporate jobs in October. The layoffs have impacted teams across logistics, payments, video gaming, cloud computing, and other divisions.
This move represents Amazon’s second-largest round of layoffs in recent years. CEO Andy Jassy has previously warned that increased use of artificial intelligence would shrink the company’s workforce over time.
Amazon Signals More Cuts, Select Hiring Ahead
Beth Galetti, Amazon’s Senior Vice President of People Experience and Technology, said the job reductions aim to streamline operations. The company wants to reduce bureaucracy, remove management layers, and shift resources to priority areas.
Galetti also indicated that Amazon may announce further layoffs. At the same time, the company plans to hire for select key roles in 2026.
AI Investment Continues to Rise
Even as Amazon reduces its workforce, it has sharply increased its investment in artificial intelligence in 2025. The company is spending billions on cloud infrastructure, custom AI chips, and advanced model development.
Reports also suggest that Amazon is in talks to invest more than $10 billion in OpenAI.