Amazon is planning to cut about 370 jobs at its European headquarters in Luxembourg, marking the group's biggest salary cut in the small but wealthy Central European country in the past 20 years.
This move is part of the global restructuring process that Amazon has been implementing to streamline the apparatus and focus resources on priority areas.
According to a Bloomberg report, the number of jobs cut accounts for about 8.5% of Amazon's total 4,370-person workforce in Luxembourg.
Initially, the dismissal plan was expected to affect 470 employees. However, after about two weeks of negotiations with labor representatives according to the provisions of the European Union labor law, this figure was adjusted down to 370.
Luxembourg has long been considered the financial center and tax haven of Europe, with high income and preferential tax policies.
For many years, large technology corporations, including Amazon, have located regional headquarters here to take advantage of a favorable business environment.
Therefore, this cut is considered to have a significant impact, not only in terms of employment but also in terms of the psychology of the international working community in this country.
The most severely affected employees will be notified in February, according to the sources. Notably, many of these workers are foreigners, from the US, Australia, Egypt, Cambodia and India, who have moved to the Luxembourg to work for the Amazon.
According to regulations, they only have about three months to find a new job if they want to continue living and working in this Republic.
In a notice sent to employees, Amazon said the staff cut is an adjustment reflecting the business and strategic needs of each locality.
The company also affirmed that the severance pay packages are offered higher than the industry average, to support employees in the transition period.
The cuts in Luxembourg came after Amazon announced plans to lay off about 14,000 jobs globally in October.
Affected departments include logistics, payments, video games, and cloud computing.
Previously, in June, CEO Andy Jassy warned that artificial intelligence will significantly change the corporation's personnel structure.
Ms. Beth Galetti, Senior Vice President of Human Resources and Technology Experience at Amazon, said the cut is to reduce administrative procedures, eliminate intermediary management layers and reallocate resources to key areas.
Ms. Galetti also confirmed that Amazon may continue to lay off in the coming time, in parallel with recruiting personnel for strategic positions in 2026.
Notably, despite streamlining personnel, Amazon will continue to increase spending on artificial intelligence in 2025, pouring tens of billions of dollars into cloud infrastructure, customized chips and developing AI models.
The group is also said to be negotiating to invest more than $10 billion in OpenAI, showing a long-term strategy focusing deeply on core technology.
