Amazon, one of the world’s biggest e-commerce companies, is planning to cut around 370 corporate jobs in its latest round of layoffs. The job losses will mainly affect staff based in Luxembourg.
This decision is part of Amazon’s wider plan to reduce its global workforce by about 14,000 employees, according to Bloomberg. The company says the move is needed to reshape its business and focus more on key areas.
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Big Impact in Luxembourg
Amazon employs about 4,370 people in Luxembourg. The planned layoffs mean around 8.5% of its local workforce will lose their jobs. Even after the cuts, Amazon will remain one of the country’s biggest private employers.
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However, the scale of the job losses is significant. It is the largest wave of layoffs in Luxembourg in more than 20 years, making it a major event for the small European nation.
Layoffs Reduced After Talks
Under European labour laws, companies must consult employee representatives before making large job cuts. After two weeks of talks, Amazon reduced the number of planned layoffs from 470 to 370.
Most affected employees are expected to receive official notice of their job loss in February.
Foreign Workers Face Uncertainty
The situation is especially hard for foreign workers who moved to Luxembourg to work at Amazon. Employees from countries such as India, the United States, Australia, Egypt and Tunisia are now unsure about their future.
Under local immigration rules, workers who lose their jobs usually have three months to find new work if they want to stay in the country. Employee groups say this will be very difficult with so many people looking for jobs at the same time.
Amazon’s Response and Union Criticism
Amazon said the layoffs are based on business needs and local strategy. The company added that its severance packages are better than industry standards.
Unions in Luxembourg have criticised the decision, saying large tech firms often hire and fire too easily. Amazon has said it will stay in Luxembourg and remains committed to the country despite the job cuts.