December 19, 2025 — Amazon is preparing to eliminate 370 roles at its European headquarters in Luxembourg, a move that would amount to roughly 8.5% of the site’s workforce and mark the company’s largest-ever round of cuts at the location. The plan, which has been negotiated under European labour rules and set out in a formal “social plan,” is landing hardest on employees in technical roles—while raising urgent concerns for foreign workers whose residency status can depend on how quickly they find new employment. [1]
The Luxembourg reductions arrive against the backdrop of Amazon’s wider corporate reshaping, as CEO Andy Jassy continues a multi-year effort to reduce layers of management, streamline operations, and invest more aggressively in artificial intelligence across the business. [2]
What Amazon is cutting in Luxembourg — and how big it is
Amazon’s Luxembourg headquarters—one of its most significant bases for European operations—employs about 4,370 people by several counts tied to the HQ itself. Cutting 370 positions makes this the biggest downsizing Amazon has carried out at the site to date. [3]
Local reporting also indicates that Amazon’s broader workforce in Luxembourg sits closer to about 4,500, reflecting how different entities and functions are counted within the country. That’s one reason the cut is widely described as historically large for Luxembourg’s labour market, and among the biggest in the country in roughly two decades. [4]
From 470 planned cuts to 370: the EU labour-law negotiations behind the “social plan”
A key detail that emerged in coverage this week: Amazon initially planned to eliminate around 470 roles, but the final figure was reduced to 370 after talks with employee representatives—negotiations required under European Union labour rules for large-scale layoffs. [5]
According to a Luxembourg-based report on the agreement, Amazon and the staff delegation reached an accord through a “collaborative approach,” framing the final number as an outcome of adjustments aligned to “business needs and local strategies.” [6]
When the layoffs will happen: notifications in February 2026
While the job cut decision is public now, the impact for employees will unfold on a set timeline:
- Amazon has indicated it will begin contacting affected staff in early February 2026, consistent with the local social-plan timeline described in Luxembourg coverage. [7]
- Other reporting similarly notes that most impacted workers are expected to be notified in February, meaning the immediate uncertainty will stretch through the start of 2026 for many teams. [8]
Who is most affected: software developers and technical roles in the AI era
Multiple reports converge on one of the most consequential aspects of the Luxembourg cuts: software developers are expected to be among the most affected, reflecting how fast AI tools are changing workflows even in traditionally “safer” engineering jobs. [9]
Employees cited in coverage described the layoffs as tied to an industry-wide shift in which companies are increasingly using AI for coding and related tasks, while also trimming headcount added during the pandemic-era boom. [10]
The expat pressure point: foreign workers and the “three-month clock”
Beyond the job losses themselves, the Luxembourg layoffs have exposed a uniquely high-stakes reality for many international employees.
Reporting highlights that Amazon’s Luxembourg workforce includes significant numbers of employees from India, the United States, Australia, Egypt, Tunisia, and other countries—and that non-EU workers who lose their jobs may face a limited window (often described as roughly three months) to secure a new role to remain in Luxembourg. [11]
A staff delegation representative warned that, with hundreds of people potentially entering the same small job market at the same time, some employees could ultimately be forced to leave the country. [12]
Severance and support: Amazon says packages exceed local benchmarks
Amazon has emphasized that it will provide a severance and support package that goes beyond what is typical in the local market.
- In a memo referenced across coverage, Amazon described the redundancies as adjustments reflecting “business needs and local strategies,” and said the termination package would go “well beyond industry benchmarks.” [13]
- Luxembourg reporting on the agreed social plan similarly states that employees covered by the plan will receive a comprehensive package exceeding comparable local agreements. [14]
- The Luxembourg plan also notes that employees and their families can access the Amazon Employee Assistance Program (EAP) 24/7, and that staff can seek support through managers, leadership, or the staff delegation. [15]
Why Luxembourg matters to Amazon’s Europe strategy
Luxembourg is not just another office location for Amazon. It has long been viewed as a strategic European hub—one that sits within a country widely known as a financial centre with business-friendly tax structures.
Coverage notes Amazon has expanded its presence in Luxembourg since 2003, and that even after the cuts it is still expected to remain Luxembourg’s fifth-largest employer. [16]
Politically, Luxembourg’s leadership has also moved to publicly reinforce the relationship. Reporting notes that Prime Minister Luc Frieden met CEO Andy Jassy in Seattle in November, with Luxembourg officials describing Amazon as a key partner and indicating Luxembourg remains central to Amazon’s European footprint. [17]
Worker concerns: staff delegation warns of “lack of mitigation” amid strong results
The layoffs have also triggered sharp criticism from labour representatives.
Earlier this month, RTL Today reported that Amazon’s Luxembourg staff delegation released a statement expressing concern about negotiations and mitigation measures, arguing that the scale of proposed cuts was difficult to square with Amazon’s financial performance and “record-breaking” profits. [18]
That statement followed reporting that up to 470 positions were initially under consideration and that talks began at the start of December—before the final number was reduced. [19]
The bigger picture: Amazon’s global cuts and AI-driven restructuring
Amazon’s Luxembourg layoffs are being widely linked to a broader corporate reset.
In October, Amazon said it planned to reduce its global corporate workforce by about 14,000, describing the move as part of a major shakeup tied in part to AI adoption and post-pandemic cost controls, while also signaling that more cuts could follow. [20]
Separate reporting by Reuters also indicated Amazon had been weighing even larger reductions (with sources describing plans that could reach tens of thousands), underscoring just how aggressively Big Tech is recalibrating management layers and headcount in response to new AI capabilities and shifting growth priorities. [21]
What happens next in Luxembourg: job market shock, ongoing hiring, and “strategic areas”
For Luxembourg, the question now is how quickly the local market can absorb skilled talent from one of the country’s most prominent employers.
One challenge repeatedly cited: Luxembourg’s population is roughly 680,000, which makes a sudden influx of hundreds of specialized job seekers unusually disruptive—especially for those targeting “big tech” roles where Amazon is seen as the dominant option locally. [22]
At the same time, Amazon is trying to balance cuts with continuity. Reporting notes that Amazon has indicated it will keep hiring in key strategic areas, and one account pointed to dozens of open roles listed in Luxembourg even as the reduction plan advances. [23]
As of December 19, 2025, the outline is clear: 370 jobs will go, the process is governed by a negotiated social plan, and employees are expected to start receiving direct notifications in February 2026. The remaining uncertainty is more personal—and immediate—especially for foreign workers whose right to stay may hinge on how quickly they can secure their next role. [24]
References
1. timesofindia.indiatimes.com, 2. www.reuters.com, 3. timesofindia.indiatimes.com, 4. today.rtl.lu, 5. timesofindia.indiatimes.com, 6. chronicle.lu, 7. chronicle.lu, 8. indianexpress.com, 9. timesofindia.indiatimes.com, 10. www.businesstimes.com.sg, 11. www.livemint.com, 12. www.livemint.com, 13. indianexpress.com, 14. chronicle.lu, 15. chronicle.lu, 16. www.businesstimes.com.sg, 17. timesofindia.indiatimes.com, 18. today.rtl.lu, 19. today.rtl.lu, 20. www.reuters.com, 21. www.reuters.com, 22. www.businesstimes.com.sg, 23. timesofindia.indiatimes.com, 24. chronicle.lu
