ASML and trade unions have reached an agreement to prevent forced redundancies. The chip machine manufacturer originally planned to cut 1,700 management roles in late January. A spokesperson now says the final number could be several hundred lower. ASML will prioritise moving affected employees into new roles within the company. This “work-to-work” approach includes internal training and career coaching to help managers transition into technical or operational positions. If internal placement fails, the company will help staff find jobs elsewhere. Departing employees will receive a severance payment equal to one month’s gross salary for each year of service.
Growth reduces need for cuts
The company attributes the lower redundancy figures to stronger growth than experts initially predicted. Demand for High-NA Extreme Ultraviolet (EUV) lithography machines remains high as global chipmakers expand their capacity. Union negotiators approve of the measures, particularly the additional compensation for workers over the age of 50. This group often faces more difficulty in the current job market. CFO Roger Dassen previously stated the cuts are necessary to fix a rigid organisational structure. The restructuring targets management positions specifically in the technology and IT departments. These departments grew rapidly during the pandemic, and the company now aims to simplify its reporting lines.
Strengthening the semiconductor ecosystem
The social plan also includes a budget for external schooling and entrepreneurship support. ASML hopes to keep talent within the Brainport Eindhoven region, even if they leave the company. This ensures that skilled managers can support the many suppliers and startups in the Dutch semiconductor ecosystem. Union members will now vote on the final proposal. If they accept, the transition period will begin immediately. ASML expects to complete the majority of the restructuring by the end of the year, allowing the company to focus on its next generation of chip-making technology.
@ anp | NEWS BRAINPORT
