ASML, Europe's most valuable company and a critical player in the global semiconductor supply chain, is moving ahead with a significant restructuring plan that could see up to 1,700 jobs cut, with middle management roles bearing the brunt. According to reports from ABP Live Business, the development reflects the Dutch chip equipment maker's attempt to simplify its organisational structure and improve efficiency amid rapid growth driven by the artificial intelligence (AI) boom. The planned job cuts follow an earlier announcement in January when the company outlined its intention to streamline operations and reorient its focus towards engineering. As per LatestLY, CEO Christophe Fouquet informed staff in a February letter that the firm aims to create roughly 1,400 new engineering positions, with the company expecting to open several hundred new positions in AI and manufacturing, with priority hiring given to current employees whose roles are at risk.
Internal documents indicate that a wide range of managerial and coordination roles are expected to be affected, including department managers, group leaders, team leaders and project leads. Several coordination-heavy roles such as program managers, product owners, scrum masters, release train engineers and delivery owners are also expected to be impacted. The restructuring also involves redefining the role of architects, senior technical staff responsible for overseeing projects, by narrowing their responsibilities and improving clarity in execution. As part of the broader overhaul, ASML is planning a six-week hiring freeze during summer months. According to LatestLY, the company is specifically targeting a wide array of supervisory and coordination roles, with positions slated for elimination including Department Managers, Group and Team Leaders, Program Managers, and several agile-specific roles such as Scrum Masters and Release Train Engineers.
ASML currently employs around 44,000 people globally, and the restructuring is expected to have implications across multiple regions. The company has also revised its estimates for layoffs in the United States, reducing the expected number of affected roles from 300 to 185, according to Business Insider. Despite the planned layoffs, ASML's leadership has emphasised that the company remains on a growth trajectory, with CEO Christophe Fouquet acknowledging concerns raised by staff regarding the transformation but reiterating the company's long-term expansion plans. Negotiations are currently underway with labour unions and the company's work council regarding the final timing and severance structures of the layoffs, with these consultations expected to play a key role in shaping how the restructuring is implemented.
ASML occupies a unique position in the global semiconductor ecosystem as the only company in the world capable of manufacturing extreme ultraviolet (EUV) lithography machines at scale, equipment that is essential for producing advanced semiconductor chips used in smartphones, computers and artificial intelligence systems. The surge in demand for AI technologies has driven strong sales and revenue growth for ASML, with its machines priced as high as $400 million being sought after by major chipmakers such as TSMC and Intel. The reorganization is aimed at flattening the org chart and creating around 1,400 new engineering roles, particularly in AI, manufacturing and customer support, with priority given to employees affected by the restructuring. According to LatestLY, the AI boom has created significant demand for ASML's lithography machines, necessitating growth in operations and customer support, while the company follows a broader "year of efficiency" trend seen across the tech sector.
ASML's move mirrors a broader shift across global technology companies, with firms including Microsoft, Amazon, Google and Meta undertaking similar exercises to streamline operations and improve efficiency. According to Reuters, Meta is also planning a fresh round of layoffs that could affect around 8,000 employees, marking one of its most significant workforce reductions since its earlier restructuring phase. The company is currently in discussions with unions and its work council regarding the structure and timing of the layoffs, with these consultations expected to play a key role in shaping how the restructuring is implemented. Industry leaders like Meta, Google, and Microsoft have similarly targeted middle-management layers over the past two years to lean out their organisations, with ASML's goal being to ensure that its complex internal structure does not hinder its ability to meet the massive demand for its USD 400 million machines as the semiconductor industry expands.
