Chip giant ASML to lay off 1,700 employees amid restructuring
What's the story
Dutch chip equipment maker ASML is set to lay off around 1,700 employees. The decision comes as part of a major organizational restructure aimed at improving efficiency and simplifying operations at Europe's most valuable company. The job cuts at ASML will primarily affect management and coordination roles, not engineers. This restructuring comes after complaints from employees and customers about the company's complex structure.
Rationale
Flattening the organizational structure
ASML's CEO Christophe Fouquet has explained that the company had become too layered and slow. He said engineers were spending more time navigating internal processes than actually doing their jobs. The reorganization is aimed at flattening the org chart and creating around 1,400 new engineering roles to replace those being removed in management positions.
Changes
US job cuts reduced to 185
The number of jobs to be cut in the US has been reduced from 300 to 185. This is part of ASML's broader plan which also includes a six-week hiring freeze over the summer. The company employs around 44,000 people globally and these changes are part of its efforts to streamline operations amid growing demands for its machines amid an AI boom.
Growth
Strong demand for ASML's machines
Despite the layoffs, ASML has reported strong sales and revenue, thanks to the high demand for its machines. The company is also looking to fill "several hundreds" of new positions as part of its reorganization plans. These roles may be in AI, manufacturing, and customer support with priority given to those at risk of being laid off.