Amazon is trimming its workforce in Luxembourg, and it’s the biggest corporate layoff the tiny nation has seen in two decades. Around 370 roles are being cut at the company’s European headquarters. And then this follows weeks of back-and-forth negotiations with local unions and the government to bring that number down from an initial 470.
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The thing is, even though 370 sounds like a drop in the bucket for a giant like Amazon, it’s a massive hit for Luxembourg’s tight-knit job market. Here’s the kicker: this is all part of a brutal global strategy to axe 14,000 corporate jobs as the company pivots hard toward AI and automation.
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The Fallout in the “Grand Duchy”
The Negotiation: Under EU rules, Amazon couldn’t just fire everyone overnight. They had to sit down with worker delegations. They managed to save 100 jobs, but 8.5% of the local staff is still getting the pink slip.
Who’s Hit Hardest? It’s mostly software developers and technical roles. It turns out even the people building the code aren’t safe when the company decides AI can do it faster.
The Visa Trap: This is the real gut-punch. A lot of these workers moved to Luxembourg from places like India or the US. If they don’t find a new job within three months, their residency permits expire.
Severance: Amazon claims they are being “generous” with packages that go well beyond local benchmarks, but for those facing deportation, the extra cash is a small consolation.
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What’s Next for Amazon?
Let’s be real, this isn’t the end of the “efficiency” era. CEO Andy Jassy has been very vocal about making the company “lean and scrappy” again. They’ve already warned that more cuts are coming in 2026. For now, affected employees in Luxembourg will be officially notified in February. It’s an ongoing “recalibration” that leaves the country’s biggest private employer looking a lot less stable than it did a year ago, or nothing.
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