Amazon to Implement Significant Job Reductions at European Headquarters
E-commerce behemoth Amazon is poised to enact substantial layoffs at its European headquarters situated in Luxembourg. Earlier this year, the company disclosed intentions to eliminate 14,000 corporate positions globally.
Recent reports indicate that Amazon plans to terminate 370 jobs, marking its most extensive job reduction at the Luxembourg facility to date.
As detailed in a report by Bloomberg, this reduction represents approximately 8.5 percent of the site’s workforce, which totals 4,370 employees. This downsizing could potentially be the most considerable in the last two decades in Luxembourg.
The headquarters, located in the Grand Duchy, renowned for its favorable tax legislation and financial benefits, has seen significant advantages from the region’s tax policies over the years, particularly benefiting major technology firms like Amazon.
Under European Union labor regulations, companies are obligated to engage in negotiations regarding layoffs with employee representatives and, in certain situations, with governmental authorities.
Initially, discussions suggested that up to 470 positions would be affected; however, following two weeks of deliberations, this number was reduced to 370. A representative from the Amazon employee delegation stated that notifications will be communicated to the affected workers in February.
In a memo circulated to staff on December 12, the company articulated that these workforce reductions are necessary “adjustments reflecting business needs and local strategies.”
Amazon further reassured that the severance packages being offered surpass industry standards. Notably, these layoffs may disproportionately impact those employees who relocated to Luxembourg for their roles at Amazon.
This cohort includes individuals from the United States, Australia, Egypt, Tunisia, and India, all of whom will face a three-month timeframe to secure new employment to maintain their residency in the Grand Duchy.
In October, Amazon had previously announced plans to eliminate around 14,000 corporate jobs, potentially affecting divisions such as logistics, payments, video gaming, and cloud computing. This marks the second significant round of layoffs for Amazon in recent memory.
Back in June, CEO Andy Jassy forewarned that advancements in artificial intelligence could lead to a scaled-back workforce.
Echoing this announcement, Beth Galetti, the senior vice president of people experience and technology at Amazon, elucidated that these layoffs are part of a broader strategy aimed at fortifying the company by streamlining operations and reallocating resources to focus on critical projects.
Galetti hinted at the likelihood of further reductions while indicating that Amazon intends to bolster hiring in pivotal areas moving forward into 2026.
Despite these job cuts, Amazon is reportedly increasing its investment in artificial intelligence, channeling tens of billions into cloud infrastructure, tailored chip development, and model enhancement. Additionally, the company is reportedly negotiating an investment exceeding $10 billion in OpenAI.
Source link: Indianexpress.com.
