About 2000 ASML employees gathered on Tuesday afternoon to protest a major reorganisation at the Veldhoven-based chip machine manufacturer. Despite the company reporting record turnover, management intends to cut 1,700 jobs globally to reduce bureaucracy. The move has met strong resistance from both staff and trade unions.
Uncertainties and concerns
Rémy Biesmans of the CNV (Christelijk Nationaal Vakverbond) criticised the company for laying off talented staff while simultaneously expanding its operations. Employees demonstrated outside the premises during their lunch break. Union flags flew high, and a fries van was provided for attendees.
The employees describe the company atmosphere as gloomy. While not everyone fears for their own position, many describe the reorganisation as a wet blanket over the firm. One employee noted that customers have recently complained about product quality, suggesting that reducing the workforce is not the right solution to these challenges.
Out of the 1,700 planned redundancies, 1,400 are expected to occur in the Netherlands. Union leaders from the FNV (Federatie Nederlandse Vakbeweging) and VHP2 have called on the company to return to the drawing board and listen to proposals from the works council. Recent consultations led to a small concession, with ASML agreeing to relocate 100 employees to other roles, but unions say this is not enough. FNv Union leader Peter Reniers emphasises that the layoffs are unacceptable, especially given the company’s financial soundness.
Further concerns have been raised regarding a new working method known as MDU. It is a structural shift in how ASML organises its engineering and IT teams called the Modular Deployment Unit. Many Staff members doubt this approach will yield the desired results. There are also questions about the extensive use of external contractors. In the meantime, Unions are investigating whether these contractors are performing structural work that could be handled by internal staff whose jobs are currently at risk.
Hiring freeze
Additionally, ASML plans to introduce a “summer freeze” on hiring, which may temporarily block internal career moves. For those moved to lower-paid roles, the company has offered a salary supplement, but this protection only lasts for 24 months. Unions warn that this system, which depends on performance reviews, could create an unsafe or high-pressure working environment.
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