ASML plans 1,700 job cuts as it restructures teams

Dutch semiconductor equipment maker ASML, said in late January it plans to cut 1,700 management positions, about 4% of its global workforce. The reductions include around 1,400 roles in the Netherlands and 300 in the US, mainly affecting technical and IT departments.

Uncertainty over who will be affected has caused unrest among employees, an ASML spokesperson said. The company said it hopes to finalize reorganization terms by April 1, with some impacted managers potentially offered engineering roles instead of redundancy.

However, the two main unions said the timeline is unrealistic. Labor unions said the timeline for negotiations may be unrealistic.

Meanwhile, Eindhoven’s city council approved a zoning plan amendment on March 11 that allows ASML to begin construction of a second campus at the Brainport Industries Campus near Eindhoven Airport that is intended to accommodate 20,000 new employees, with the first 5,000 expected by early 2028.

The company reported strong revenue and order growth in 2025, recorded €13.2 billion (US$15.17 billion) in Q4 orders.

🔗 Source: Tom’s Hardware

🧠 Food for thought

Implications, context, and why it matters.

ASML reshapes management to move faster

ASML describes the management cuts as an effort to speed up decision-making after rapid growth, rather than a cost trim 1.
The plan removes a slow “project/matrix setup” (a structure where employees report to both a functional manager and a project manager). It also aims to revive a “fast-moving culture” by assigning most engineers to specific products and reducing layers of approval 1.
Investors call the shift “housekeeping” meant to sharpen efficiency and delivery, not a reaction to a crisis 2.
The company says it is acting from a “moment of strength” so it can keep growing by innovating better and faster 1.

ASML growth strains production and Eindhoven

The reorganization adds execution risk, with concerns that a slimmer structure may struggle to ship complex, high-demand EUV and High NA systems (ASML’s most advanced chipmaking machines) on schedule. Delays could ripple to customers such as TSMC and Intel 2.
Outside the company, plans to add 20,000 employees are tightening pressure on the Eindhoven region, with political worries about higher home prices and overstretched healthcare systems 3, 4.
The dispute has reached a point where the city council authorized the municipality to pursue court proceedings that could force remaining landowners to sell property for the new campus 5, 6.