Amazon Announces Largest-Ever Layoffs at European Headquarters; Software Developers Hit Hardest

Amazon has revealed the largest job cuts in its history at its European headquarters in Luxembourg, stating that 370 workers will lose their jobs over the next few weeks. The cut represents approximately 8.5% of the current workforce of 4,370 at Amazon Luxembourg.

The move follows Amazon’s broader global restructuring push, after the company revealed plans in October to eliminate 14,000 jobs worldwide as it accelerates investments in artificial intelligence and automation.

Social Plan Finalised After Talks

According to reports from the Luxembourg Times, Amazon and employee representatives finalised a social plan late last week after nearly two weeks of negotiations, a process mandated under European Union labour laws. The company had initially proposed cutting 470 roles but agreed to reduce the number following discussions with staff delegates.

The layoffs are scheduled to take effect in February 2026, giving affected employees time to prepare for the transition. While specific compensation details remain confidential, staff representatives said the severance packages compare favourably with similar agreements in Luxembourg.

Software Developers Most Affected

Bloomberg reported that software developers are expected to be the most impacted, as AI-driven tools increasingly replace or reduce the need for traditional coding roles. An Amazon employee told the publication that the sudden entry of hundreds of jobseekers into Luxembourg’s small labour market—home to just 680,000 people—could make re-employment challenging.

Employees who relocated from other countries to work in Luxembourg reportedly have three months to secure new employment locally or leave the country.

“370 is a very large number, but compared to where discussions began, it’s slightly better,” said Prash Chandrasekhar, a representative of the staff delegation. “That said, the impact on Luxembourg will still be significant.”

Amazon Pledges Support for Affected Staff

In a statement, an Amazon spokesperson said the company’s priority is to support affected employees throughout the transition and ensure the agreed measures are implemented smoothly and in compliance with local labour regulations.

Despite the layoffs, Amazon reiterated its long-term commitment to Luxembourg. The country remains Amazon’s fifth-largest employer, and the company continues to view Luxembourg as a key strategic hub in Europe.

Luxembourg Remains Strategic Partner

Luxembourg Prime Minister Luc Frieden recently met Amazon CEO Andy Jassy in Seattle, where Jassy reportedly reaffirmed that Luxembourg would remain Amazon’s strategic European partner.

Amazon also confirmed that it will continue hiring in select strategic areas, with more than 50 open positions currently listed in Luxembourg, even as it pursues cost-cutting measures aimed at making the company leaner and less bureaucratic.

The Luxembourg layoffs are part of Amazon’s wider restructuring under CEO Andy Jassy, following a period of rapid expansion during the pandemic. Between 2022 and 2023, Amazon cut 27,000 jobs globally as it adjusted to slowing growth and shifting technology priorities.