ASML Announces European-Wide Restructuring, Impacting Approximately 1,700 Positions

ASML to Cut Management Roles in Restructuring Efforts

ASML, Europe's most valuable company, plans to reduce a wide range of management roles as part of a broader push to simplify its organization and improve efficiency. According to internal documents seen by Business Insider, the move is part of a broader effort to restructure the company's organizational chart to focus on engineering.

The move follows ASML's January announcement that it would cut up to 1,700 jobs. The company has also told its staff that it would reduce the number of architects responsible for coordinating projects and give them more clearly defined responsibilities within the firm. This effort is aimed at addressing the complex and inefficient structure that has been criticized by employees and customers.

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ASML is also planning a six-week hiring freeze over the summer, and has slashed the number of US roles expected to be impacted by the layoffs from 300 to 185. The company employs about 44,000 people worldwide.

In a letter to employees sent in February, ASML CEO Christophe Fouquet said the firm's employees had expressed concerns about the "consequences" of the transformation. He also said the company would aim to create around 1,400 new engineering jobs as part of the major reshuffle.

"We realize that we will continue to grow at a fast pace and will need people on the operations side to help us achieve that growth," Fouquet wrote.

However, an ASML spokesperson told Business Insider that the reorganization plans were not final, adding that the company has already reduced the impact of the reorganization in the United States.

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ASML is the only company in the world that manufactures extreme ultraviolet lithography (EUV) machines at scale, which are crucial for producing semiconductor chips that are used in smartphones, computers, and AI data centers. The company reported booming sales and revenue last week.

The AI boom has led to strong demand for ASML's machines, which can cost as much as $400 million and are purchased by major chipmakers such as TSMC and Intel. However, ASML is not the only Big Tech company planning to slash middle management roles. Microsoft, Amazon, Google, and Meta have all cut jobs in the past few years, especially targeting management roles.

In a more recent instance, Meta is likely to lay off around 8,000 employees, in its most significant layoff since a restructuring in late 2022 and early 2023. The ASML spokesperson said booming demand for the Dutch company's lithography machines means it expects to open "several hundreds" new positions, with priority given to staff at risk of being laid off. The new roles may be added in AI, manufacturing, and customer support.

ASML is currently in the process of having negotiations with unions and the work council, an elected body of employee representatives, over the timing and structure of the layoffs.