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."
You may like Despite AI chip boom and record high stock price, ASML to lay off employees China's top chip execs claim ASML alternative 'small, fragmented, and weak' ASML projects $71 billion in revenue by 2030, as demand for EUV lithography machines intensifies due to AI boom 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.
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.
Get Tom's Hardware's best news and in-depth reviews, straight to your inbox.
Key considerations
- Investor positioning can change fast
- Volatility remains possible near catalysts
- Macro rates and liquidity can dominate flows
Reference reading
- https://www.tomshardware.com/tech-industry/SPONSORED_LINK_URL
- https://www.tomshardware.com/tech-industry/asml-workers-still-in-the-dark-seven-weeks-after-1700-management-cuts-announced#main
- https://www.tomshardware.com
- The Nightmare Returns in the Cloud: GeForce NOW Unleashes Capcom’s ‘Resident Evil Requiem’
- Silicon Power US RMA policy now hedges against AI-driven RAM and SSD shortages — company says it will refund the original purchase price 'if there is a shortage
- Grab a new Elegoo 3D printer for as little as $154 in this massive Spring sale — save up to 31% on top-rated FDM and resin models before the stock runs out
- Survey Reveals AI Advances in Telecom: Networks and Automation in Driver’s Seat as Return on Investment Climbs
- MSI MAG B850 Tomahawk Max Wifi II Motherboard review: Sharpening the Tomahawk’s blade
Informational only. No financial advice. Do your own research.