Seven weeks after announcing a reduction of 1,700 management positions, ASML still has not clarified which employees will actually be affected. The uncertainty has become one of the main sources of tension within the Dutch manufacturer of semiconductor equipment, a key player in the global chip industry and one of Europe’s major technological symbols.
The situation is especially notable because it comes at a time of financial strength for the company. ASML closed 2025 with record revenues of €32.7 billion and a net profit of €9.6 billion, while forecasting 2026 sales between €34 billion and €39 billion. In other words, the company anticipates continued growth while reorganizing part of its internal structure and leaving the immediate future of hundreds of workers uncertain.
Cuts Amid a Boom
The announced adjustments mainly affect management positions in Technology and IT departments. Of the 1,700 layoffs planned, 1,400 are in the Netherlands and 300 in the United States. Based on ASML’s total workforce of over 44,000 full-time employees, as detailed in its corporate documentation, this cut represents nearly 4% of its staff.
The company has defended that this restructuring aims to reduce bureaucracy and strengthen focus on engineering and innovation. On paper, the message is clear: fewer layers of management and greater emphasis on technical profiles. However, in practice, the process has been much more confusing for employees. Company spokespeople have acknowledged in Dutch media that many workers still do not know their status or whether their positions are among those affected.
This limbo is precisely fueling internal dissatisfaction. It is not only about the number of jobs at risk but also about the lack of individual responses in a company accustomed to growth, hiring, and projecting stability. ASML has indicated it will try to redeploy some affected employees into engineering roles, but it has also admitted it will not be able to prevent all exits.
Unions Oppose Rushing the Restructuring
Management aims to finalize the restructuring by around April 1, but unions consider that schedule unrealistic. Both FNV and CNV believe the priority should be first to identify all internal redeployment options before rushing into a formal agreement.
From a union perspective, the issue is not only about the substance but also the process. They fear that a hastily negotiated deal could leave workers worse protected, especially when the company is reporting record results and maintains a positive outlook. Their declared goal is to avoid forced layoffs and to buy time to more thoroughly examine which profiles might still fit within ASML.
This conflict between business urgency and union prudence encapsulates the current situation. The company wants to simplify its structure to respond more agilely to the investment cycle in advanced chips. Conversely, worker representatives argue that such a significant restructuring should not be rushed, especially when the group continues to grow and the market continues to show positive signals.
The Paradox: Restructuring Today, 20,000 Jobs Tomorrow
The most visible contradiction is in Eindhoven. The city council approved this month the necessary urban planning changes for ASML to develop its second major campus in Brainport Industries Campus, near Eindhoven Airport. According to the current plan, the first 5,000 employees are expected to relocate there by early 2028, and in the long term, the facility is designed to host around 20,000 staff.
This number is enormous even for ASML. It approaches the size of its entire current workforce in the Netherlands, which exceeds 23,500 employees. For this reason, unions are questioning the logic behind the move: if the company is preparing for such a significant expansion, it’s hard to understand why it is simultaneously implementing a substantial reduction in management roles.
However, ASML’s explanation revolves around a change in priorities rather than a business downturn. The company wants to allocate more resources to product development and technical capacity, especially as demand linked to Artificial Intelligence drives its clients to accelerate investments in logic chips and DRAM memory. In this context, ASML closed Q4 2025 with orders totaling €13.2 billion—more than double what much of the market expected—and ended the year with a backlog of €38.8 billion.
Another deeper message is that ASML is preparing for a 2026 market where China will play a smaller role in its revenue. The company has indicated that the Chinese region’s contribution could fall to around 20% of total sales this year, partly due to export restrictions that limit the sale of certain advanced equipment. This is a significant adjustment but not sufficient to overshadow the company’s optimistic growth forecasts.
In this balancing act between expansion, geopolitical pressure, and internal reorganization, much of ASML’s current narrative is being shaped. The firm remains one of the most valuable pieces in the global semiconductor ecosystem, but the episode shows that even record-breaking giants are not immune to the strains caused by internal transformations. The important question is no longer just how many jobs will disappear, but how this process will affect the confidence of a workforce that recently viewed growth as the norm.
Sources:
ASML, Q4 and full-year 2025 results.
ASML, transcript of the January 2026 earnings call.
ASML, publication of the 2025 annual reports and staffing data.
Omroep Brabant, approval of ASML’s new campus in Eindhoven.
NL Times, information on workforce uncertainty and union negotiations.
Omroep Brabant, coverage of union unrest following the announcement of layoffs.
Frequently Asked Questions
Why is ASML reducing jobs if its revenues are at record highs?
Because the company does not frame the adjustment as a response to a sales crisis but as a restructuring to cut management layers and strengthen engineering and innovation.
Which positions are affected by ASML’s plan?
Primarily management roles in the Technology and IT departments. Most of the cuts are concentrated in the Netherlands, with 1,400 layoffs, and an additional 300 in the United States.
Where will ASML’s new campus be in Eindhoven?
The new complex will be built in Brainport Industries Campus, near Eindhoven Airport. Currently, the plan is for the first 5,000 employees to move there by early 2028.
How will China impact ASML’s business in 2026?
ASML expects the share of sales from China to decrease to around 20% of total, partly due to export restrictions that limit sales of certain advanced equipment.
via: tomshardware