Amazon plans largest-ever job cuts at its Luxembourg headquarters

Amazon is set to cut 370 jobs at its European headquarters in Luxembourg, marking its largest workforce reduction in the country in two decades. The move comes as the company continues a broader global restructuring.

Hundreds of employees at Amazon’s European headquarters in Luxembourg are set to lose their jobs in the company’s largest-ever cut at the site. (Express Image)

E-commerce giant Amazon is expected to cut hundreds of jobs at its European headquarters in Luxembourg. Earlier this year, the company had announced its plans to cut 14,000 corporate jobs worldwide. And now, it is being reported that the company will axe 370 jobs, its largest-ever job cut in the Luxembourg facility.

According to a report in Bloomberg, the 370 jobs constitute about 8.5 per cent of the workforce, which is 4,370. Reportedly, these job cuts would be the largest in the last 20 years in Luxembourg. The headquarters is located in the Grand Duchy, which is widely known as a tax haven and financial hub offering higher incomes and lower taxes. Over the years, big tech like Amazon has benefited from the country’s taxation laws.

Reportedly, the European Union’s labour laws require companies to negotiate terminations with employee representatives and even with the government at times. Initially, the job cuts were to impact 470 personnel; however, two weeks of talks brought down the figure to 370. The Bloomberg report citing a member of the Amazon employee delegation said that the most affected workers will be notified in February.

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In a memo to its staff dated December 12, the company explained that the redundancies are ‘adjustments that reflect business needs and local strategies.’ The company also added that the termination package goes well beyond industry benchmarks. Reportedly, these job cuts could adversely affect employees who moved to Luxembourg to work for Amazon. These employees hail from the US, Australia, Egypt, Tunisia, and India, and they would be compelled to find another job in three months to sustain themselves in the Duchy.

In October, Amazon Inc. announced its plans to cut about 14,000 corporate jobs that could impact personnel serving in departments such as logistics and payments, video games, cloud computing, etc. This is the second biggest layoff by Amazon in recent years. In June, CEO Andy Jassy had warned that AI will shrink the company’s workforce.

In line with the announcement, Beth Galetti, senior vice president of people experience and technology at Amazon, explained that the reductions were a continuation of this work to get even stronger by further reducing bureaucracy, removing layers, and shifting resources to ensure that the company is investing in its biggest bets. Galetti indicated that more layoffs are in the offing, adding that the company would also be hiring in key areas in 2026.

Even while trimming jobs, Amazon has dramatically stepped up its AI spending in 2025, pouring tens of billions into cloud infrastructure, custom chips, and model development while reportedly entering talks to invest over $10 billion in OpenAI.

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