Unions criticize ASML for laying off staff despite expansion plans

The CNV union said it was “completely taken aback” by ASML’s plan to cut 1,700 jobs. The Veldhoven-based chip equipment maker revealed this on Wednesday, alongside news of record revenue last year. The union described the explanation as “very unclear.”

The CNV union likens ASML to "The Very Hungry Caterpillar." “Cash is flowing in, and the future looks very promising. Still, to increase profits further, they apparently feel the need to cut staff,” said CNV negotiator Arjan Huizinga. “The company aims to prioritize engineering and innovation, but in the process, 1,700 employees, mostly in process management, are considered obstacles. This is not how you should treat people.”

ASML is reducing its workforce, citing that the company has become too inflexible. Engineers are reportedly spending excessive time on tasks unrelated to innovation, CFO Roger Dassen said on Wednesday. The company currently has more than 44,000 employees.

ASML plans to recruit approximately 20,000 more employees over the long term, which only adds to the union’s confusion. “The company projects massive growth in the coming years and intends to expand its staff, yet they are letting so many people go now. That doesn’t make sense,” Huizinga said.

ASML is discussing the layoffs with the works council and the union, while CNV is advocating for a “comprehensive and fair social plan.”

The union FNV expects the social plan to be brief. "It can be summarized on one page: no compulsory dismissals," says union negotiator Peter Reniers. The union will sit down with ASML on Wednesday afternoon, with Reniers eager to learn why the layoffs are happening.

FNV rejects the chipmaker’s claim that the company has simply become too rigid. "They structured it that way themselves. The company cannot now wield the axe while performance is strong," the union argues.