ASML workers still in the dark seven weeks after 1,700 management cuts announced — cuts represent 4% of its global workforce

Employees at ASML still don't know whether they will lose their jobs, some seven weeks after the Dutch chip equipment maker announced plans to cut 1,700 management roles alongside record full-year revenue of €32.7 billion. The cuts target management positions in ASML's technology and IT departments, with 1,400 roles going in the Netherlands and 300 in the United States, representing roughly 4% of the company's global workforce.

The prolonged uncertainty is generating internal unrest, according to an ASML spokesperson who spoke to Dutch broadcaster Omroep Brabant. "People simply don't know where they stand. ‘What does this mean for me?’ they ask," the spokesperson said. "We can't answer that question on an individual level right now. It's a very difficult situation for everyone, and it's causing unrest, and we completely understand that."

According to trade unions familiar with the matter, ASML said it hopes to finalize the terms of the reorganization by April 1, with some of the affected management employees potentially offered new engineering positions as an alternative to redundancy. "We will do everything we can to keep that number as low as possible," the spokesperson said. "But it will never be completely zero."

Both of the main unions involved have rejected the April 1 target as unworkable. FNV negotiator Peter Reniers called the timeline "unrealistic," arguing ASML should instead identify where displaced employees can be redeployed internally before pushing toward a formal agreement. "There's no need to do this abruptly now," Reniers told the broadcaster.

Meanwhile, CNV negotiator Rémy Biesmans said he doesn’t expect a deal in the next three weeks either, describing the situation as a choice between resolving things quickly at the risk of getting the terms wrong, or taking longer to reach an outcome that actually protects workers. "Our goal remains to avoid forced layoffs," he said.

Cuts and expansion plans run in tandem

The unions have also questioned the logic of the cuts despite expansion plans. 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, a site intended to accommodate 20,000 new employees. That’s nearly double the company's current Dutch headcount of around 23,000, and the first 5,000 workers are expected to move in by early 2028.

The company reported a net profit of €9.6 billion for 2025 and has guided for revenue of €34 to €39 billion for 2026, with Q4 2025 orders alone coming in at €13.2 billion, which was more than double analyst expectations. China's share of revenue, meanwhile, is projected to fall from 33% in 2025 to around 20% in 2026 as U.S. export controls continue to restrict sales of EUV equipment to Chinese manufacturers.

Follow Tom's Hardware on Google News, or add us as a preferred source, to get our latest news, analysis, & reviews in your feeds.