Amazon is executing its largest-ever workforce reduction at its European headquarters in Luxembourg, officially signing a social plan to cut 370 jobs. This move, which impacts roughly 8.5% of its 4,370 local employees, follows a broader global strategy announced in October to eliminate 14,000 corporate positions as the company pivots heavily toward Artificial Intelligence. While Amazon initially planned to cut 470 roles, intense two-week negotiations mandated by EU labor laws reduced the final count, though the impact remains severe for the local tech community.
The restructuring is hitting software developers the hardest, as Amazon increasingly deploys AI to handle complex coding and technical automation tasks. The timing is particularly critical for foreign workers from countries like India and the US, who now face a strict 90-day deadline to find new employment or lose their residency permits. Despite these cuts, CEO Andy Jassy has reaffirmed that Luxembourg remains a “strategic partner,” even as the company reallocates billions in capital toward custom AI chips and a potential massive investment in OpenAI.
