Despite AI chip boom and record high stock price, ASML to lay off employees — company to streamline IT and Technology departments, proposed cuts mostly affect leadership roles

(Image credit: ASML)

Despite the massive AI infrastructure build-out and a bumper earnings call on Tuesday, ASML, the only company in the world that manufactures the tools that make the cutting-edge chips that are currently in high demand, announced that it plans to lay off some of its employees. According to the company’s announcement, it’s streamlining its Technology and IT & Data organizations, with the former moving “from a project/matrix setup to one where most of our engineers will be dedicated to a specific product and module.” This reorganization is meant to simplify processes and decision-making throughout the company.

“As a result of these proposed changes, some roles — mainly at the leadership level — may no longer be required,” ASML said in its press release. “At the same time, to retain our engineering capability, we will create new engineering jobs to strengthen existing technology projects and embark on new ones to support our own and our customers’ growth plans. While this will allow some of our impacted colleagues to move to new roles, we have to acknowledge that some will leave ASML as a result.” This isn’t just a minor trim for the two departments, too. Even though ASML still plans on creating roles in Manufacturing, Customer Support, and Sales, it expects to reduce its headcount by 1,700 positions, mostly affecting the Netherlands and the United States.

ASML has a practical monopoly on chipmaking tools, and it stands to benefit from the continuing growth of the semiconductor industry. Despite that, it seems that it wants to maintain a lean and efficient workforce, even as it’s growing its headcount and footprint with its Eindhoven expansion expected to be online by 2028. “As our FY 2025 financial results demonstrate, we are choosing to make these changes at a moment of strength for the company,” the company stated. “Improving our processes and systems will allow us to innovate more and innovate better, generating further responsible growth for ASML and our stakeholders.”

This is one of the first major announcements of layoffs in the tech industry for 2026, which has been hit with over 100,000 job cuts in just the first half of last year. Intel took the lead with the layoffs, prompted by the financial disaster that first came to light in 2024, with Microsoft and Meta following closely behind. However, these job losses aren’t caused by a contraction of the tech industry — instead, it’s driven by industry shifts, with AI and automation taking over many entry-level positions. ASML’s announcement, though, is different, with many of the affected personnel expected to be from leadership positions — mostly middle managers and up.

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Jowi Morales is a tech enthusiast with years of experience working in the industry. He’s been writing with several tech publications since 2021, where he’s been interested in tech hardware and consumer electronics.

2 Comments Comment from the forums

Gururu

Going to be a long couple of years as this becomes the norm. Does this speak to IT field in general?
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JamesJones44

Gururu said:
Going to be a long couple of years as this becomes the norm. Does this speak to IT field in general?
I think so, if you look at IT hiring trends, it has slowed a lot since 2023. There is still hiring, but it's at a slow pace. Some blame the COVID over hiring, but we are almost 5 years post the COVID hiring boom and hiring is still slow in the IT field.
Reply