ASML, the Dutch semiconductor‑equipment giant that holds a near‑monopoly on advanced lithography tools used to manufacture cutting‑edge chips, is planning to cut roughly 1,700 jobs, or about 4 per cent of its 44,000‑person workforce. The move was announced in January alongside the company’s record full‑year revenue of €32.7 billion and signals a major internal reorganisation aimed at streamlining operations even as demand for advanced chips accelerates.
The layoffs are part of a broader restructuring designed to flatten ASML’s organisational structure and reduce layers of management and coordination roles, rather than reduce its core engineering strength.
Who Is Being Affected
According to internal documents reviewed by international media, the job cuts are primarily targeting management and coordination roles rather than front‑line engineers. The list of impacted titles includes Department Managers, Group Leaders, Team Leaders, Project Leads, Chief Product Owners, Product Owners, Scrum Masters, Main Delivery Owners, Release Train Engineers, Program Managers, and Project Cluster Managers.
The company said that the reorganisation aims to create around 1,400 new engineering positions to replace the management roles being removed, effectively shifting the workforce mix towards hands‑on technical staff. Roughly 1,400 of the affected positions are based in the Netherlands, with 185 in the US, down from an earlier plan to cut about 300 American roles.
AI‑Driven Demand and Structural Adjustments
The backdrop to the move is the surge in demand for advanced semiconductors driven by artificial intelligence, cloud data centres, and high‑performance computing. ASML’s lithography systems are essential for producing the most advanced logic nodes used in AI accelerators and data‑centre processors, giving the company strong top‑line growth despite the cuts.
Internally, ASML has framed the layoffs as a response to organisational bloat: engineers were reportedly spending more time navigating internal processes and hierarchy than directly working on machine development and customer support. By flattening the org chart, the company aims to accelerate decision‑making and improve responsiveness to customer needs without downsizing its core R&D or production capability.
Union Reaction and Hiring Freeze
The reorganisation has drawn pushback from worker groups. More than 1,000 employees staged a lunchtime walkout at ASML’s Veldhoven headquarters in March, and the main union, FNV, has called for a second protest during the company’s upcoming shareholder meeting. Union leaders argue that, given ASML’s €9.6 billion net profit in the previous year and a planned €12 billion share‑buyback programme, the company could avoid forced redundancies.
ASML has also announced a six‑week summer recruitment freeze while final decisions are being negotiated with unions and the company’s internal works council. The company stresses that the exact number and composition of roles being cut are still under review and that final determinations will depend on the outcome of ongoing discussions.
