ASML layoff: Europe’s chip giant to cut 1,700 jobs — these roles face the biggest risk
ASML, Europe’s most valuable company, plans to cut a wide range of management roles as part of a broader effort to simplify its organization and improve efficiency, according to internal documents seen by . Business Insider, reported the development on April 21.
The move comes after ASML announced in January that it would cut 1,700 jobs and restructure its organizational chart to focus on engineering, after employees and customers complained about the company’s highly inefficient, complex structure.
The chip-making giant also told employees it would reduce the number of architects (senior technical roles) responsible for coordinating projects and give them more clearly defined responsibilities within the firm.
hiring freeze
ASML is also planning a six-week hiring freeze over the summer, reducing the number of positions expected to be affected by layoffs in the US from 300 to 185, according to separate documents seen by . Business Content. ASML employs approximately 44,000 people worldwide.
In a letter to employees 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 recognize that we will continue to grow rapidly and will need people on the operations side to help us achieve that growth,” Fouquet wrote.
However, an ASML spokesperson said: Business Content restructuring plans are not final, he said, adding that the company has already mitigated the impact of restructuring in the United States.
Which roles are at risk?
Here are all the roles ASML says will be eliminated as part of the new management structure:
- Department Manager
- Group Leader
- Team Leader
- Project Leader
- Chief Product Owner
- Product Owner
- Scrum Masters
- Main Delivery Owner
- Free the Train Engineers
- Program Manager
- Project Cluster Manager
- The cornerstone of the chip industry
ASML reports strong revenue and sales
ASML is the only company in the world that produces extreme ultraviolet lithography (EUV) machines at scale, which are vital in the production of semiconductor chips used in smartphones, computers and AI data centers. The company reported increases in sales and revenue last week.
According to the news, the AI boom has led to a strong demand for ASML machines; These machines can cost up to $400 million and can be purchased by major chip manufacturers such as TSMC and Intel.
But ASML isn’t the only Big Tech company planning to reduce middle management roles. Microsoft, Amazon, Google and Meta have made layoffs in the last few years, specifically targeting management roles. In a more recent example, Meta will lay off about 8,000 employees in the most significant layoff since a restructuring in late 2022 and early 2023, three sources with knowledge of the company’s plans said. Reuters.
An ASML spokesman said rising demand for the Dutch company’s lithography machines meant the company was expecting to open “several hundred” new positions, with priority given to staff at risk of redundancy. New roles can be added in artificial intelligence, production and customer support.
ASML is currently in the process of negotiating with unions and the works council, an elected body of employee representatives, on the timing and nature of the layoffs.
