Amazon Eliminates 370 Roles at European HQ in Major Layoff Linked to AI Push

In the upcoming weeks, Amazon plans to lay off 370 employees at its European headquarters in Luxembourg. At this workplace, this will be the largest round of job reductions ever. Approximately 8.5% of the 4,370 employees are impacted by the cuts. The layoffs follow Amazon's announcement in October that it will cut 14,000 jobs worldwide as part of a larger transition to artificial intelligence.

The Luxembourg Times said that following two weeks of negotiations, Amazon and staff representatives reached a consensus on a social plan late Friday. During talks, the company's initial proposal to remove 470 positions was modified. Before considering significant layoffs, businesses are required by EU labour legislation to consult with worker representatives. The final number of layoffs was decreased in part because of these regulations.

Amazon Choosing AI Over Human Workforce

Software developers are anticipated to be disproportionately affected by job layoffs associated with AI-led developments at Amazon. A Bloomberg study claims that many of the positions being eliminated are in software development because IT businesses are increasingly employing artificial intelligence to handle coding and related tasks.

Amazon explained the layoffs as modifications based on local strategy and business objectives in a message emailed to employees on December 12. Additionally, the business claimed that the severance benefits provided to staff members were beyond industry norms. The situation has not been addressed officially by Luxembourg's labour ministry.

Amazon Employees in Disarray

For workers searching for new employment in Luxembourg, the situation may be challenging, according to one Amazon employee who spoke to Bloomberg. In a nation of about 680,000 people, it could be difficult to locate new jobs when hundreds of people are entering the local labour market at the same time. Workers who relocated to Luxembourg from other nations will only have three months to either find employment elsewhere or depart. It is anticipated that the layoffs will begin in February.

Amazon's management stated that the compensation packages are comparable to or superior to comparable redundancy programmes in Luxembourg, despite the fact that specifics have not been made public. According to an Amazon representative, the company's primary goal at this time is to implement the agreed-upon steps and assist impacted employees during this time of change.