Amazon to lay off 370 staff in Luxembourg. What’s driving the job cuts?

Amazon is preparing to lay off 370 employees in Luxembourg in the coming weeks, adding to a wider round of global job cuts announced earlier this year, reported Bloomberg. The decision has raised concerns locally, especially among foreign workers employed by the company.

The Luxembourg layoffs are The company says the move is meant to simplify its operations and focus more on priority areas such as artificial intelligence and long-term growth.

Manwhile, Amazon employs about 4,370 people in Luxembourg, and the planned cuts will affect nearly 8.5% of its workforce there. Even after the layoffs, Amazon will remain one of the country’s biggest private employers.



However, this is the , making it a major event for the local labour market.

Under European labour laws, companies must hold discussions with employee representatives before making large-scale layoffs.

After two weeks of consultations, Amazon reduced the number of planned job cuts from 470 to 370. Employee representatives say most affected staff are likely to receive formal notice in February.

In a memo sent to employees on December 12, Amazon said the layoffs were based on business needs and local strategy. The company also claimed that the severance packages being offered are better than standard industry practices.

The Luxembourg labour ministry has not yet made a public statement.

The layoffs are especially worrying for foreign employees who moved to Luxembourg to work at Amazon. Workers from countries such as India, the US, Australia, Egypt and Tunisia now face uncertainty.

Under local immigration rules, employees who lose their jobs usually have just three months to find new work if they want to stay in the country. With hundreds of people job-hunting at the same time, this may prove difficult.

Trade unions in Luxembourg have criticised Amazon’s decision, noting that the company benefits from favourable tax arrangements in the country.

They argue that large tech firms often hire aggressively and then cut jobs quickly, a practice they say does not fit well with Luxembourg’s tradition of social dialogue and worker protection.

Amazon has indicated that further layoffs could take place in 2026, while new hiring will be limited to select roles linked to growth areas.

For now, employees in Luxembourg and elsewhere are watching closely as the company continues to reshape its global workforce.

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