When you purchase through links on our site, we may earn an affiliate commission. Here’s how it works .
(Image credit: ASML) Share Share by: Copy link Facebook X Whatsapp Reddit Pinterest Flipboard Email Share this article 3 Join the conversation Follow us Add us as a preferred source on Google 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.”
Sales of chip production equipment to reach $156 billion by 2027 due to AI and DRAM demand
'TSMC 'very nervous' about AI bubble concerns despite another record-setting quarter, but assured of demand
Nvidia CEO Jensen Huang allegedly asks managers discouraging AI use: ‘Are you insane?’
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.
Follow Tom's Hardware on Google News , or add us as a preferred source , to get our latest news, analysis, & reviews in your feeds.
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-to-lay-off-employees-despite-ai-chip-boom-and-record-high-stock-price-company-to-streamline-it-and-technology-departments-proposed-cuts-mostly-affect-leadership-roles#main
- https://www.tomshardware.com
- From Pilot to Profit: Survey Reveals the Financial Services Industry Is Doubling Down on AI Investment and Open Source
- Intel's roadmap adds mysterious 'hybrid' AI processor featuring x86 CPUs, dedicated AI accelerator, and programmable IP — chip may capitalize on a market forgot
- AMD Ryzen 7 9850X3D review: The world's fastest gaming processor, again
- DoomBuds ports the 1993 FPS classic to open-source earbuds by streaming JPGs at 18fps — runs on 300MHz CPU with less than 1MB of RAM
- 'Thermodynamic computing' could slash energy use of AI image generation by a factor of ten billion, study claims — prototypes show promise but huge task require
Informational only. No financial advice. Do your own research.