Amazon to cut 370 jobs as global workforce reductions continue

Amazon is preparing to cut around 370 jobs at its European headquarters in Luxembourg, extending its global workforce reductions into one of its most strategically important overseas locations.

The planned layoffs, expected to be implemented in the coming weeks, represent about 8.5 per cent of the site’s workforce, according to people familiar with the matter cited by Reuters. Amazon employs roughly 4,370 people in Luxembourg, where it has built a major corporate and operational base over more than two decades.

The move follows Amazon’s earlier announcement of roughly 14,000 job cuts worldwide as the company seeks to streamline costs, reduce layers of management and redirect investment towards artificial intelligence and automation. The Luxembourg reductions form part of that broader restructuring.

Reuters reported that Amazon had initially proposed cutting about 470 roles at the site, but the number was reduced following negotiations with employee representatives, as required under European Union labour rules. Companies operating in the bloc must consult worker delegations before carrying out large-scale redundancies.

Most affected employees are expected to be formally notified in February, according to representatives involved in the discussions. In an internal memo seen by Reuters, Amazon described the cuts as “adjustments that reflect business needs and local strategies,” and said the severance packages offered in Luxembourg would exceed local market standards. Luxembourg’s labour ministry declined to comment publicly on the talks.

While the number of job losses is modest by Amazon’s global scale, the impact is significant for Luxembourg. Local unions said this would mark the largest single corporate layoff in the country in at least 20 years. The last comparable episode occurred in 2006, when electronics group TDK shut a factory and laid off 344 workers.

Employee representatives have warned that the cuts could disproportionately affect foreign staff, who make up a large share of Amazon’s workforce in the country. Under Luxembourg’s immigration rules, non-EU workers who lose their jobs typically have three months to find new employment or leave the country.

Several employees told Reuters that software developers and technical roles are likely to be among the hardest hit, reflecting a wider shift across the technology sector as companies turn to AI tools to automate coding and routine engineering tasks. Amazon has previously said it expects further workforce reductions in 2026, while limiting hiring to priority growth areas.

The layoffs have also revived scrutiny of Amazon’s long-standing presence in Luxembourg, including its tax structure. Public filings show Amazon EU Sarl reported €70.4 billion in European e-commerce sales last year, largely offset by expenses, resulting in a relatively small taxable profit. Amazon has consistently said it complies fully with local and European tax laws, noting that corporate taxes are levied on profit rather than revenue.

For Luxembourg, the decision underscores the growing tension between its role as a hub for global technology firms and the employment volatility tied to shifting strategies in the tech sector.