ASML reaches deal with unions to reduce forced layoffs amid restructuring

ASML and labour unions have agreed on a social plan designed to minimise forced layoffs at the company. The semiconductor equipment maker said in late January that approximately 1,700 management roles would be cut, though a company spokesperson stated on Tuesday that the final number of job losses could be reduced by several hundred.

Under the social plan reached between ASML and the unions FNV, CNV, De Unie, and VHP2, the company will help impacted staff transition into new roles wherever possible.

If employees cannot be reassigned internally, ASML will provide support in securing other employment. Workers who leave the company will also receive severance pay worth one gross monthly salary for every year they have worked at the semiconductor equipment maker.

Union members will now vote on the agreement. Labour union De Unie said the social plan offers strong support and safeguards for affected employees.

According to the spokesperson, the expected number of redundancies may decrease because ASML’s growth has exceeded earlier forecasts. The company has not yet determined how many employees will eventually be laid off.

Sjerp Holterman, who negotiated on behalf of trade union De Unie, praised the steps ASML is taking to avoid forced layoffs, as well as the severance arrangements for departing staff. Workers aged over 50 will be entitled to extra compensation under the agreement.

At the end of January, ASML Chief Financial Officer Roger Dassen said the cuts were needed because the company had become too inefficient and difficult to manage. The chip equipment maker intends to remove many management roles across its technology and IT departments, although some affected employees were already expected to be reassigned internally.