ASML Achieves Record Revenue, Expects Continued Growth
ASML, the leading chip machine manufacturer based in Veldhoven, has announced plans to reduce its management workforce significantly. The company, known for its advanced EUV machines, expects to eliminate around 1,700 positions as part of a broader restructuring effort. This decision comes on the heels of an impressive financial year, where ASML achieved record revenue of €32.7 billion, a 16% increase from the previous year.
Significant Management Restructuring
The restructuring aims to streamline operations within the technology and IT divisions. CEO Roger Dassen explained that the current organizational structure has hindered efficiency. Engineers are spending approximately 35% of their time on coordination tasks that do not contribute to innovation.
- ASML plans to cut a total of 3,000 management roles.
- The layoffs will primarily affect positions in the Netherlands and the United States.
- Some employees may transition to engineering roles focused on artificial intelligence applications within chip machines.
Dassen emphasized that while cost savings will result from these changes, the primary motivation is to enhance management effectiveness. “It has become complex, and our goal is to simplify,” he stated, acknowledging the emotional toll of these layoffs on his team.
Record Revenue and Future Growth
ASML’s remarkable financial performance includes a strong finish to 2025. The last quarter alone generated €9.7 billion in revenue. Looking forward, ASML expects 2026 to be another growth year, with projected revenues ranging from €34 billion to €39 billion. This anticipated growth is driven primarily by surging demand for its EUV machines.
Understanding EUV Technology
EUV machines are state-of-the-art equipment used in chip production. These machines utilize ultraviolet light to accurately print intricate patterns on chips. ASML is the only company capable of providing fully operational EUV systems, which are essential for manufacturing the most advanced chips used in smartphones and military technology.
Sales Performance
In 2025, ASML’s order intake rose from nearly €36 billion in 2024 to €38.8 billion. The net profit for the year reached €9.6 billion, increasing from €7.6 billion in 2024. The company emphasizes that adapting its organizational structure will enable it to fully capitalize on projected sector growth in the coming years.
In summary, ASML is poised to modify its management structure significantly while gearing up for continued expansion within the semiconductor industry. Stakeholders, including employees and labor representatives, will be informed about the planned changes in due course.
