Amazon is set to fire 370 people at its European headquarters in Luxembourg in the coming weeks, as Bloomberg reports. That accounts for about 8.5 percent of the workforce. Amazon initially planned to reduce its headcount there by 470, but under European Union law, companies have to negotiate layoffs with employee reps and, in some cases, governments.
Amazon reportedly told employees at the European HQ in a memo the layoffs are “adjustments that reflect business needs and local strategies.” The company claims to be going “well beyond industry benchmarks” in Luxembourg with regards to the severance packages it’s offering.
An Amazon employee said it would be difficult for hundreds of people who are all going into the job market at the same time to find employment elsewhere in the country. Affected employees who moved from other countries to work for Amazon will have to leave if they don’t land another job in Luxembourg within three months. After the layoffs, Amazon is still expected to be the fifth-largest employer in Luxembourg, which has a population of 680,000.
One employee told Bloomberg that the cuts would primarily affect software developers amid a push in the tech industry for AI to take on more coding tasks. Amazon said in October it would cut 14,000 jobs from its global workforce amid its deepening embrace of AI. It was reported that same month that the company’s plans to ramp up its robotics operations could put around half a million jobs in the US at risk.
