Amazon Restructures Workforce, Slashes Luxembourg Jobs While Doubling Down On AI

Amazon.com Inc (NASDAQ:AMZN) is continuing a broad restructuring of its global workforce as it balances cost controls with heavy investment in artificial intelligence and cloud infrastructure. • What’s ahead for AMZN stock? Amazon Plans Deep Luxembourg Job Cuts The company is set to lay off 370 employees or about 8.5% of its Luxembourg workforce. In 2025, the Big Tech giant had shared plans to cut 14,000 jobs. Also Read: Amazon Doubles Down On AI With New Self-Running Agents And Custom-Built Chips These upcoming layoffs mark the country's largest in at least two decades and highlight the challenges facing Amazon's European operations. The layoffs affect Amazon's 4,370 employees in Luxembourg, where the company has steadily grown since 2003, Bloomberg reported on Tuesday. Amazon maintains its headquarters in Luxembourg's Kirchberg district. Even after the cuts, Amazon will remain the nation's fifth-largest employer. Under EU labor laws, Amazon negotiated the reduction with employee representatives, lowering the initial plan from 470 to 370 positions. Amazon will notify most workers in February. Amazon said the cuts reflect "business needs and local strategies," noting the severance packages exceed industry norms. Some layoffs are expected to target software developers. Global Restructuring and Cost Pressures Amazon’s third-quarter expenses increased to $162.7 billion, up from $141.5 billion a year ago. An October report said Amazon plans to cut up to 30,000 corporate jobs starting Tuesday to streamline operations and rein in hiring that surged during the COVID-19pandemic. The layoffs, which could hit nearly 10% of its 350,000 corporate workforce, would mark the largest job cuts in the company's history, according to Reuters. The report indicated Amazon’s plan to reduce staff across multiple divisions, including human resources, operations, devices and services, following smaller cuts made over the past two years. The $2.4 trillion market cap company gained just over 1% year-to-date amid investor concerns over heavy AI spending and a slowdown in Amazon Web Services growth. AI Strategy Shapes Workforce and Investor Outlook CEO Andy Jassy is driving the restructuring to lower costs, flatten management layers and boost efficiency, while pointing to increased AI use as a factor in eliminating repetitive roles. Wall Street analysts turned more constructive on Amazon after AWS re:Invent, highlighting the company's push toward agent-driven AI and advances in custom chips. Bank of America Securities’ Justin Post, JP Morgan’s Doug Anmuth and Wedbush’s Scott Devitt said Amazon demonstrated meaningful progress with new autonomous AI agents, stronger performance from its Trainium chips, and deeper integration with Nvidia technology. They also pointed to AWS AI Factories and expanded foundation models as signs that Amazon is positioning its cloud platform to capture rising enterprise demand for generative AI. AMZN Price Action: Amazon.com shares were up 0.30% at $223.12 at the time of publication on Tuesday, according to Benzinga Pro data. Read next: Nvidia Fuels Taiwan’s High-Stakes AI Push