ASML's 1,700 Management Cuts Create Seven-Week Stalemate as Workers Remain in Limbo

Seven weeks after ASML announced plans to cut 1,700 management roles, employees at the Dutch chip equipment maker remain in limbo, with no clarity on who will lose their jobs. The cuts, which represent roughly 4% of ASML's global workforce, target management positions in technology and IT departments, with 1,400 roles going in the Netherlands and 300 in the United States.

The prolonged uncertainty is generating significant 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."

ASML had initially targeted April 1 as a deadline to finalize the terms of the reorganization, with some affected management employees potentially offered new engineering positions as an alternative to redundancy. However, both of the main unions involved have rejected this timeline as unworkable.

FNV negotiator Peter Reniers called the April 1 target "unrealistic," arguing that ASML should first 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 timing of these cuts creates an unusual contrast with ASML's 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. This site is intended to accommodate 20,000 new employees—nearly double the company's current Dutch headcount of around 23,000. The first 5,000 workers are expected to move in by early 2028.

This expansion comes despite the company's management restructuring. The juxtaposition highlights the complex nature of ASML's workforce planning, where cuts in certain areas coincide with aggressive hiring in others.

Financially, ASML remains strong. The company reported a net profit of €9.6 billion for 2025 and has guided for revenue of €34 to €39 billion for 2026. Fourth-quarter 2025 orders alone came in at €13.2 billion, more than double analyst expectations.

However, ASML faces shifting market dynamics. China's share of revenue 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. This reduction in Chinese business may be contributing to the company's decision to streamline management while simultaneously expanding in other areas.

The situation at ASML reflects broader tensions in the semiconductor industry, where companies must balance workforce optimization with continued investment in growth areas. As negotiations continue, the April 1 deadline appears increasingly unlikely, potentially extending the period of uncertainty for ASML's management workforce well beyond the initial target.