Amazon Reports €1bn Investment in Luxembourg in 2023

On Thursday 14 November 2024, Amazon reported that it had invested €1 billion in Luxembourg last year.

Amazon disclosed its investment and economic impact figures for Luxembourg at the company's annual meeting on Thursday.

Addressing thousands of Luxembourg-based employees gathered at the European Convention Center in Luxembourg-Kirchberg and virtually, Jorrit Van der Meulen, Vice President, European Stores, said: "The figures we announced today demonstrate the significant, positive impact Amazon has in the countries where we operate, including Luxembourg - our European home for more than 20 years now. I am proud of the contributions we have made so far and am excited for what’s to come."

Amazon noted that, in 2023 alone, it invested over €1 billion in the Grand Duchy, taking the investments made in the country to more than €9 billion since 2010. These figures include over €3 billion in employee compensation and benefits since 2010 and contributions that have reportedly boosted the local economy more widely.

Amazon added that its investments in 2023 indirectly supported more than 6,000 jobs in Luxembourg across sectors such as construction, logistics and professional services, according to estimates by Keystone Strategy, a third-party consultancy. These investments contributed to more than €758 million to Luxembourg's GDP in the same year, with a cumulative contribution of over €3.5 billion since 2010, according to the estimates.

Keystone Strategy also found that for each euro invested by Amazon in Luxembourg since 2010, an estimated €0.77 has been generated in value-added effects (GDP contributions) - a development which Amazon said highlighted its role as "a significant driver of economic growth" in the Grand Duchy.

Commenting on the economic analysis and investment data, Luxembourg Prime Minister Luc Frieden said that the company's decision to establish its European headquarters in Luxembourg 20+ years ago "has allowed it to expand its presence in the country and become one of the biggest employers today, building on its investment and innovations and creating thousands of jobs in the process". He added: "Private sector investment is vital for driving innovation, creating high-quality jobs and substantially contributing to the economy. The Luxembourg government is committed to ensuring Luxembourg's competitiveness, in the interest of a modern economy as a bedrock for a strong social model."

Amazon opened its first office in Luxembourg-Grund in 2003 and later relocated to Luxembourg-Kirchberg, which now hosts the company's entire campus, made up of seven buildings. Amazon noted that the move was necessary to accommodate its growing workforce, which now includes more than 4,250 employees. A range of business teams are based in Luxembourg, from Amazon Stores to Operations, Devices and Amazon Web Services (AWS).

The company stated that these investments in Luxembourg are part of a broader commitment to the European Union. Since 2010, Amazon has invested more than €180 billion across EU member states, including over €30 billion in 2023 alone. Keystone Strategy estimates that Amazon contributed more than €25 billion to the GDP of EU countries in 2023 and more than €140 billion since 2010.