Amazon Plans Major Workforce Reduction at European HQ

Layoffs Highlight Shift in Business Strategy

In Luxembourg, Amazon is preparing to dismiss 370 employees from its European headquarters in the upcoming weeks. This decision, reported by Bloomberg, represents about 8.5% of the workforce at that location. Initially, the company aimed to let go of 470 staff members, but due to European Union regulations, negotiations with employee representatives and, at times, government bodies, are necessary before such actions can be finalized.

Communicating with its staff in Luxembourg, Amazon explained that these layoffs are tactical measures aligning with the company's business priorities and local strategic goals. Furthermore, Amazon emphasized its efforts to exceed industry norms in Luxembourg, particularly concerning the severance packages offered to those affected.

Challenges for Displaced Workers

An employee noted the challenge the layoffs pose, as hundreds entering the job market simultaneously could face difficulty securing new positions locally. Employees who relocated from other nations to join Amazon and can't secure employment in Luxembourg within a quarter of a year might need to leave the country. Despite the reductions, Amazon is expected to maintain its position as the fifth-largest employer in Luxembourg, which has a population of about 680,000.

Technological Shift Influencing Employment

According to one employee, the majority of the job cuts will target software developers. This move is part of a broader industry trend where AI technology is increasingly being used to perform coding tasks, reducing the need for human software developers. Back in October, Amazon announced its plan to cut 14,000 jobs globally as it deepens its investment in AI innovations. Additionally, the company’s strategy to expand its robotics operations was reported to potentially threaten approximately half a million jobs in the United States.