E-commerce behemoth Amazon is reportedly looking to cut short workforce at its European headquarters in Luxembourg by 370, extending the impact of the company’s global workforce reductions into one of its most strategically significant overseas hubs.
The planned layoffs, expected to be carried out in the coming weeks, amount to about 8.5 percent of the site’s workforce, according to people familiar with the matter. Amazon employs roughly 4,370 people in Luxembourg, and has built a major operational and corporate presence over the past two decades. The reductions follow Amazon’s earlier decision to eliminate about 14,000 roles globally, part of a broader effort to streamline operations and redirect resources toward areas such as artificial intelligence and automation.
As per reports, the e-commerce major initially sought to reduce its Luxembourg headcount by approximately 470 positions, but the figure was lowered after negotiations with employee representatives, as required under European Union labor law. Companies operating in the bloc must consult worker delegations—and in some cases government authorities—before proceeding with mass redundancies. Most affected employees are expected to be formally notified in February, according to representatives involved in the talks. In a memo sent to staff, Amazon described the layoffs as “adjustments that reflect business needs and local strategies,” adding that the severance terms offered in Luxembourg would exceed prevailing industry standards. Luxembourg’s Labor Ministry did not publicly comment on the negotiations.
While the absolute number of layoffs is modest by global standards, the impact is outsized for Luxembourg, where this represents the largest single corporate job cut in at least two decades, according to local unions. The last comparable event occurred in 2006, when electronics manufacturer TDK closed a factory and laid off 344 workers. Employee representatives warn that the cuts will be particularly disruptive for foreign staff, who make up a significant portion of Amazon’s workforce in the country. Under Luxembourg’s immigration rules, non-EU workers who lose their jobs typically have three months to secure new employment or leave the country.
Several employees said the layoffs are expected to fall heavily on software developers and technical roles, mirroring trends across the technology sector as companies increasingly rely on AI tools to automate coding and routine engineering work. Amazon has been vocal about its intention to reduce internal bureaucracy and accelerate adoption of generative AI across its operations. In October, the company said further workforce reductions could follow in 2026, while hiring would be limited to priority growth areas. Employees also pointed to aggressive hiring during the pandemic-era e-commerce surge as a factor behind the current pullback.
Labor unions in Luxembourg have criticized Amazon’s decision, arguing that the cuts run counter to the country’s social model, which emphasizes dialogue between employers, workers, and the state. “These job cuts were avoidable,” said Isabel Scott, a spokesperson for the General Luxembourg Workers’ Organization (OGBL). “Luxembourg works to attract international talent, but large tech companies often apply a U.S.-style hire-and-fire approach.”
The layoffs have also revived scrutiny of Amazon’s long-standing tax arrangements in Luxembourg. The company has structured much of its European business through local holding entities, a strategy that has drawn political and public attention for years. According to public filings, Amazon EU Sarl reported €70.4 billion in European e-commerce sales last year, offset by nearly equivalent expenses, resulting in a comparatively small taxable profit. Amazon has repeatedly said it complies fully with local and European tax laws, emphasizing that corporate taxes are assessed on profit rather than revenue.