Eindhoven, netherlands – ASML, the worldS dominant supplier of lithography systems for chipmakers, announced plans too cut roughly 1,700 jobs despite reporting record fourth-quarter orders of €13.2 billion. The move, impacting leadership and support roles primarily in the Netherlands and the U.S., signals a company effort to streamline operations amid surging demand fueled by the global race to build advanced artificial intelligence infrastructure. This restructuring reflects a broader tension within the semiconductor industry: rapid growth alongside pressures to improve efficiency and protect critical technologies.
ASML Announces Restructuring, Layoffs Despite Record Orders
Despite receiving a record volume of orders for its chipmaking systems, ASML, the world’s sole manufacturer of advanced lithography equipment, plans to reduce its workforce by approximately 1,700 employees, representing around 4% of its total staff. The move is intended to address concerns about excessive bureaucracy that the company believes could hinder production speed, according to a company statement.
ASML CEO Christophe Fouquet emphasized that the restructuring is aimed at increasing the company’s agility. The cuts will primarily affect leadership and support positions in the Netherlands, with a smaller number of layoffs planned in the United States. The goal is to streamline processes and allow engineers to focus more on product development, the company said.
Financial Performance and Outlook
ASML’s Chief Financial Officer Roger Dassen noted that these are the first large-scale layoffs in many years, adding that the company has become too complex as it has expanded its operations. In the fourth quarter of 2025, ASML reported record orders totaling €13.2 billion, nearly double analyst expectations. This surge was largely driven by strong demand for advanced lithography systems, particularly EUV systems, which accounted for €7.4 billion in orders.
The strong fourth quarter performance boosted ASML’s stock value by 4.3%. Total ASML revenue for 2025 reached €32.7 billion. The company is forecasting revenue between €34 billion and €39 billion for the current year. These projections reflect growing investments in AI infrastructure from chipmakers like TSMC, Intel, and Samsung, all of whom rely on ASML’s advanced systems for next-generation manufacturing nodes. This outlook underscores the critical role ASML plays in the global semiconductor supply chain.
China Market and Export Restrictions
China remains a significant market for the Dutch company’s products, despite export restrictions. In the fourth quarter of last year, China accounted for 36% of net sales. However, that share is expected to decline to around one-fifth of total revenue as ASML does not sell its most advanced EUV systems or newer DUV systems to China. Chinese companies are instead utilizing older lithography machines, which are eight generations behind ASML’s flagship EUV systems.
Reorganization and Future Plans
ASML plans to reorganize its technology division to foster closer collaboration between engineers and specific products and modules. The company also intends to create new positions in manufacturing, customer service, and sales, while reducing management layers. ASML is also actively working on building a new production line in Eindhoven, which could employ up to 20,000 additional workers by 2028.
Reports have surfaced of attempts by Chinese and Russian engineers to obtain ASML’s technology secrets, including hacking into equipment and hoarding data.
