ASML Holding to cut 1,700 jobs in major layoff move

A number of managerial positions will be eliminated by ASML, the most valuable firm in Europe. The company is taking this action as part of its larger strategy to streamline its operations and increase productivity. Following its January announcement to reorganise its organisational chart and remove up to 1,700 jobs in order to concentrate on engineering, ASML has now taken this step.

The decision is a result of widespread criticism of the company's complicated and extremely inefficient organisational structure from both staff and consumers. Additionally, the chipmaking powerhouse informed its employees that it will be cutting back on the number of architects—senior technical positions—tasked with project coordination. Therefore, the firm will assign these architects more specific roles within the company.

ASML Adopts New Strategy for Workforce Management

During the summer, ASML will also be implementing a hiring freeze of six weeks. It has also reduced the number of US jobs anticipated to be affected by layoffs from 300 to 185. Worldwide, ASML employs over 44,000 individuals. Chief Executive Officer Christophe Fouquet of ASML wrote to staff in February that they had voiced their concerns on the "consequences" of the change. He went on to say that as part of the massive shakeup, the firm would be looking to add some 1,400 engineering positions.

The firm is aware, according to Fouquet's writing, that it will keep growing rapidly and will require operations-side personnel to assist in this expansion. But according to an ASML representative who talked with a news source, the company's restructuring plans are still in the works. He went on to say that the American branch of the company has mitigated the effects of the restructuring. Semiconductor chips utilised in smartphones, laptops, and AI data centres are manufactured by ASML, the sole global manufacturer of large-scale extreme ultraviolet lithography (EUV) machines. Sales and income for the company were said to be rising last week.

Job Cuts New Normal for Tech Giants

Major chipmakers like TSMC and Intel buy ASML's equipment, which can cost up to $400 million, due to the huge demand caused by the AI boom. Having said that, ASML is far from alone among Big Tech companies that intend to reduce positions in middle management. Management positions have been among the most hit by recent layoffs at such companies like Meta, Amazon, Google, and Microsoft.

The most recent round of layoffs at Meta, which occurred during a reorganisation in late 2022 and early 2023, is expected to affect some 8,000 workers. According to the ASML spokeswoman, the Dutch firm plans to create "several hundreds" of new jobs due to the surge in demand for their lithography tools. Priority is given, however, to employees who are in danger of losing their jobs. Jobs in artificial intelligence, production, and customer service might expand. The timing and structure of the layoffs are presently being discussed by ASML, unions, and the work council, an elected assembly of employee representatives.