ASML to trim management layers as it plans up to 1,700 job cuts

Europe’s most valuable chip equipment maker ASML is planning to cut a broad range of management roles as part of a wider restructuring that could see up to 1,700 jobs eliminated, according to internal documents cited by Business Insider.

The move forms part of a broader effort to simplify the company’s organisational structure and improve efficiency, following concerns from employees and customers about operational complexity, Business Insider reported on 21 April.

Restructuring shifts focus to engineering

The planned changes build on a restructuring announced in January, when ASML said it would reduce headcount and refocus its organisational model around engineering priorities. The company is also set to cut or redefine several senior coordination roles, including architects responsible for overseeing complex projects.

Internal documents reviewed by Business Insider indicate that a wide range of middle and senior management roles will be affected. These include positions such as department managers, group leaders, project leads, product owners and programme managers.

The restructuring aims to streamline decision making and assign clearer responsibilities across teams, reflecting a shift away from layered coordination structures.

Hiring pause and reduced US impact

ASML is also planning a six week hiring freeze during the summer, according to separate internal documents cited by Business Insider. At the same time, the company has reduced the number of roles expected to be affected in the United States to 185 from an earlier estimate of 300.

The company employs around 44,000 people globally, underscoring the scale of the planned changes.

In a letter to employees in February, chief executive Christophe Fouquet acknowledged concerns raised by staff about the impact of the transformation. “We realise that we will continue to grow at a fast pace and will need people on the operations side to help us achieve that growth,” he wrote, as reported by Business Insider.

He added that the company plans to create around 1,400 new engineering roles as part of the restructuring.

An ASML spokesperson told Business Insider that the reorganisation plans are not yet final and said the company has already reduced the potential impact of the changes in the United States.

Strong demand reshapes workforce strategy

The restructuring comes despite strong business momentum. ASML remains the only company globally that manufactures extreme ultraviolet lithography machines at scale, equipment that is critical for producing advanced semiconductor chips used in smartphones, computers and artificial intelligence infrastructure.

According to Business Insider, demand for these machines has surged amid the global AI boom, with individual systems costing as much as $400 million and purchased by major chipmakers such as TSMC and Intel.

The company recently reported robust revenue and sales, highlighting a contrast between strong market demand and internal restructuring.

ASML’s move mirrors a broader trend across the technology sector, where companies have been trimming middle management layers to improve efficiency. Firms including Microsoft, Amazon, Google and Meta have all undertaken similar job cuts in recent years, often targeting management roles.

According to Business Insider, ASML is currently in discussions with unions and its works council on the timing and structure of the layoffs.

While the restructuring underscores pressure to streamline operations, the company’s plan to add engineering roles and prioritise redeployment suggests a recalibration rather than a contraction.

With demand for advanced chipmaking equipment expected to remain strong, ASML appears to be reshaping its workforce to align more closely with technical execution and long term growth.