Tech giant Amazon will be cutting 370 jobs at European headquarters in Luxembourg in the coming weeks, a local media outlet said. This job cut would mark
the company's largest-ever workforce reduction at the facility. The layoffs account for about 8.5 per cent of Amazon’s 4,370 employees in Luxembourg and come after the tech giant’s October announcement of 14,000 job cuts globally as part of its push toward artificial intelligence. According to the Luxembourg Times, the company and staff delegates signed a social plan late Friday following two weeks of negotiations. Amazon had initially planned to cut 470 positions but reduced the number during talks mandated under European Union labour laws, which require companies to negotiate redundancies with employee representatives. Also Read - Amazon Layoffs Aren’t Over: 14,000 Jobs Already Cut in October, More Coming The restructuring at Amazon is expected to impact software developers the most as the company looks to push for more usage of AI for coding tasks. One Amazon employee told Bloomberg that hundreds of workers entering Luxembourg’s job market at the same time would face difficulties finding alternative employment in the country of about 680,000 people. The employee added that affected staff who relocated from abroad have a three-month deadline to secure new jobs in Luxembourg or leave the country. "370 is a very big number but considering where we started, it feels a little better," Prash Chandrasekhar, a staff delegation representative, told the Luxembourg Times. "It's still a big impact and will put pressure on Luxembourg." The layoffs are scheduled to take effect in February. While details of the compensation packages have not been disclosed, Chandrasekhar said they “compare favourably” with other social plans in Luxembourg. "Our immediate focus will be on implementing the agreed measures and providing support to impacted employees throughout this transition," an Amazon spokesperson said in a statement shared with the media. The job cuts in Luxembourg form part of Amazon’s wider cost-cutting drive under CEO Andy Jassy, aimed at making the company “leaner and less bureaucratic” while ramping up investment in generative artificial intelligence. Amazon cut about 27,000 jobs globally between 2022 and 2023 after a pandemic-era hiring surge.
