Amazon has confirmed its largest-ever round of layoffs at its European headquarters in Luxembourg, cutting approximately 370 jobs, or 8.5% of the site’s 4,370 employees. The move is part of a broader global restructuring under CEO Andy Jassy, aimed at reducing costs, flattening management layers, and redirecting resources toward Artificial Intelligence (AI) development.
The Luxembourg cuts form a key component of Amazon’s plan to eliminate 14,000 corporate roles worldwide, a strategy Jassy has framed as making the company “leaner and less bureaucratic” while speeding up decision-making across teams.
Who Is Most Affected by the Layoffs?
The impact of the layoffs is not evenly distributed. Software developers are reportedly the hardest hit as Amazon expands its use of generative AI to automate routine coding and engineering tasks. This shift has reduced demand for certain traditional development roles, particularly in internal tools and support functions.
Another vulnerable group is foreign and expatriate employees, especially non-EU workers. Luxembourg’s immigration rules typically allow just three months for non-EU employees to secure a new job after termination. With hundreds of skilled professionals entering a relatively small job market at the same time, finding comparable roles locally is expected to be challenging.
The layoffs also heavily target middle management. Globally, around 78% of the roles cut fall between Level 5 and Level 7, which include junior and senior managers. Amazon is intentionally reducing management layers to increase each manager’s “span of control” and improve operational efficiency.
Key Details and Legal Context
Amazon initially proposed cutting 470 roles, but this number was reduced to 370 following mandatory negotiations with trade unions OGBL and LCGB, in line with EU labor regulations. Local unions have described the move as the largest single corporate layoff in Luxembourg in at least two decades.
Most affected employees are expected to receive formal notification in February 2026. Amazon has stated that its severance packages exceed industry standards, typically including full-pay notice periods, extended health insurance coverage, and outplacement support.
Why Amazon Is Cutting Jobs Now
Several factors are driving the decision. Amazon is accelerating its AI transformation, with increased focus on agent-driven AI systems and custom chip development. At the same time, the company continues a post-pandemic correction, scaling back a workforce that expanded rapidly during the e-commerce boom. Efficiency remains a central priority, with leadership targeting overlapping roles and slower decision-making structures.
Despite the layoffs, Amazon remains Luxembourg’s fifth-largest employer and has emphasized that it will continue hiring in strategic areas, particularly AI and AWS, signaling that the restructuring is a shift in priorities rather than a retreat from the region.
