The statement addresses serious concerns over the delegation’s efforts to “constructively engage” with Amazon amid claims the online retailer is unnecessarily cutting jobs in a manner that does not “mitigate” the severe impact redundancies would have on many of its employees.
It was reported on 19 November that the online-retail giant is planning to axe up to 470 positions in the Grand Duchy. Currently, 4,500 people are employed by Amazon in Luxembourg, and if earlier reports are correct, it would mean reducing its workforce by 10% in the region. The job cuts are part of a global plan to reduce Amazon’s workforce by a reported 14,000 worldwide.
The talks commenced on 1 December with Amazon stating: “These discussions reinforce our commitment to constructive dialogue that prioritises our employees and supports our teams through this transition”.
According to delegates, the direction of talks is especially “concerning” after “record-breaking” profits and a narrative of existing success that should allows Amazon to restructure its redundancies in alignment with its claims of being an “employee-first culture”.
Prime Minister Luc Frieden has met with senior leadership of Amazon, and there are known interactions with Luxembourg’s national employment agency (ADEM); however, the results of these discussions are yet to be disclosed.
“The Amazon Luxembourg staff delegation is concerned with the current state of negotiations regarding the proposed workforce reductions in Luxembourg. Despite multiple attempts to engage constructively with leadership, Amazon’s efforts to reduce the number of impacted roles are lacking.
While the company plans to restructure to support long term financial success, the publicly available financial reporting does not point to an urgent need to restructure. From a financial perspective, the company has the flexibility to restructure gradually while mitigating negative impacts on Luxembourg employees, their families, and the local economy. The proposed mitigation measures presented by leadership thus far have been inadequate in addressing the scale of disruption to our colleagues’ lives and careers.
These developments are particularly concerning given Amazon’s recent record-high stock performance and exceptional Q3 financial results. Globally, the company made $59 B in profit (net income) in 2024, an approximately 3x increase compared to 5 years ago and an approximately 25x increase compared to 10 years ago. As obtained from the Luxembourg Business Register, the nine Luxembourg entities made approximately $2.15 B in profit, a 5x increase compared to 5 years ago.
While we remain committed to the ongoing dialogue, the current trajectory does not align with Amazon’s stated principles of employee-first culture, commitment to its people and its goal to be Earth’s best employer. The current situation demands a more substantive response from leadership that truly reflects Amazon’s financial position and responsibility to its workforce.”
Amazon has been approached for further comment.
