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Amazon announces biggest ever layoffs at its European headquarters; these employees affected the most
Amazon announces biggest ever layoffs at its European headquarters; these employees affected the most
Amazon will cut 370 jobs at its European headquarters in Luxembourg in the coming weeks, marking the company's largest-ever workforce reduction at the facility. The layoffs represent about 8.5% of the 4,370 employees based there and follow the tech giant's October announcement of 14,000 global job cuts amid its push toward artificial intelligence.
The company and staff delegates signed a social plan late Friday after two weeks of negotiations, according to the Luxembourg Times. Amazon had initially planned to eliminate 470 positions but reduced the number during talks mandated under European Union labor law, which requires companies to negotiate redundancies with employee representatives.
Software developers will be primarily affected by the cuts, Bloomberg reported, as the tech industry increasingly deploys AI for coding tasks. One Amazon employee told Bloomberg that hundreds of workers entering Luxembourg's job market simultaneously would struggle to find alternative employment in the country of 680,000 people. Affected employees who relocated from other countries face a three-month deadline to secure new jobs in Luxembourg or leave.
“370 is a very big number but considering where we started, it feels a little better,” Prash Chandrasekhar, a staff delegation representative, told the Luxembourg Times. “It's still a big impact and will put pressure on Luxembourg.”
The layoffs won't take effect until February. Details of compensation packages remain confidential, though Chandrasekhar said they “compare favourably” to other social plans in Luxembourg.
“Our immediate focus will be on implementing the agreed measures and providing support to impacted employees throughout this transition,” an Amazon spokesperson said in a statement shared with the media.
Despite the cuts, Amazon remains Luxembourg's fifth-largest employer. Luxembourg Prime Minister Luc Frieden met with Amazon CEO Andy Jassy in Seattle in November, where Jassy assured him that Luxembourg “remains the strategic partner in Europe,” the Luxembourg Times reported, citing the prime minister's office.
In a joint statement, Amazon's leadership team and staff delegation said the company would provide “a comprehensive package that goes well beyond industry benchmarks and comparable local agreements in Luxembourg.” The company emphasized its commitment to implementing the plan “with care, clarity, and in full compliance with local employment law.”
The Luxembourg reductions are part of Amazon's broader cost-cutting campaign under CEO Andy Jassy, who has sought to make the company “leaner and less bureaucratic” while investing heavily in generative AI. Amazon laid off 27,000 employees globally between 2022 and 2023 following a pandemic-era hiring surge.
Amazon currently lists 56 open positions in Luxembourg on its recruitment platform and has indicated it will continue hiring in “key strategic areas” despite the ongoing workforce reductions.
Source: Msn
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