In a bid to improve efficiency and simplify operations, Dutch chip equipment maker ASML is moving ahead with a major organisational overhaul.
ASML is set to lay off around 1,700 employees as part of its restructuring efforts. The move is aimed at streamlining operations at Europe’s most valuable company. The job cuts will mainly impact management and coordination roles, while engineering positions will remain largely unaffected. The decision follows concerns raised by employees and customers about the company’s complex organisational structure.
Focus on simplifying structure
CEO Christophe Fouquet said the company had become too layered and slow. He noted that engineers were spending more time dealing with internal processes instead of focusing on their core work.
To address this, ASML plans to flatten its organisational structure. The company will also create around 1,400 new engineering roles to replace positions being removed from management.
US job cuts reduced and hiring pause planned
As part of the restructuring, job cuts in the US have been reduced from 300 to 185. The company will also implement a 6-week hiring freeze during the summer.
ASML currently employs around 44,000 people globally. These changes are part of its efforts to streamline operations as demand for its machines rises amid the AI boom.
Strong demand continues despite layoffs
Despite the layoffs, ASML has reported strong sales and revenue driven by high demand for its semiconductor equipment. The company also plans to fill “several hundreds” of new roles under its reorganisation strategy.
These new positions are expected to be in areas such as AI, manufacturing, and customer support, with priority given to employees at risk of being laid off.
Also read: Viksit Workforce for a Viksit Bharat
Do Follow: The Mainstream LinkedIn | The Mainstream Facebook | The Mainstream Youtube | The Mainstream Twitter
About us:
The Mainstream is a premier platform delivering the latest updates and informed perspectives across the technology business and cyber landscape. Built on research-driven, thought leadership and original intellectual property, The Mainstream also curates summits & conferences that convene decision makers to explore how technology reshapes industries and leadership. With a growing presence in India and globally across the Middle East, Africa, ASEAN, the USA, the UK and Australia, The Mainstream carries a vision to bring the latest happenings and insights to 8.2 billion people and to place technology at the centre of conversation for leaders navigating the future.
