A fresh round of job cuts is set to impact Amazon’s operations in Europe in the coming weeks. The company is expected to lay off 370 employees at its European headquarters in Luxembourg, accounting for about 8.5 percent of its workforce at that location, according to a report.
Amazon had earlier planned to reduce 470 roles. However, European Union rules require companies to hold consultations with employee representatives and, in some cases, government authorities before finalising layoffs. This process led to a lower number of planned job cuts.
In a memo shared with employees, Amazon said the layoffs are “adjustments that reflect business needs and local strategies.” The company also stated that it is going “well beyond industry benchmarks” in Luxembourg when it comes to severance packages.
An Amazon employee told a publication that it would be difficult for hundreds of people to look for new jobs at the same time in a small country like Luxembourg. Another outlet reported that non EU workers who lose their jobs usually have 3 months to secure new employment or leave the country under local immigration laws.
Despite the workforce reduction, Amazon is still expected to remain the 5th largest employer in Luxembourg. The country has a population of around 680000.
The job cuts are expected to mainly affect software developers, according to an employee cited in a report. This comes as the technology sector increasingly adopts artificial intelligence to manage coding and development tasks. Amazon had said in October that it planned to cut 14000 jobs globally as it expands its use of AI.
In the same month, reports also suggested that Amazon’s plans to scale up its robotics operations could place around 500000 jobs in the US at risk, highlighting the growing impact of automation and AI on employment across the tech industry.
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