ASML and unions finalize social plan to address 1,700 job cuts

ASML and the labour unions have reached an agreement on a social plan covering the company’s ongoing restructuring, according to De Unie. Earlier this year, ASML announced plans to eliminate 1,700 positions, saying the organisation had become inefficient and overly complex.

Under the deal, employees are protected from compulsory layoffs until 1 May next year, providing a period of job security as the restructuring process moves forward. The agreement has a duration of two years and will apply retroactively from 1 June, meaning its provisions are already in force from that date.

Staff members whose positions have been earmarked for redundancy will have the opportunity to apply for vacancies that arise elsewhere within ASML before the no-layoff period expires. According to the company, this internal redeployment process could save hundreds of jobs.

The arrangement was initially agreed in principle with the unions FNV, CNV, De Unie, and VHP2 last month. It has now become final after receiving majority support from union members working at ASML.

The agreement has received backing not only from the Dutch unions, but also from the Belgian trade union ACV. Among CNV members, support was strong, with nearly 70 percent of participating voters approving the deal.

The restructuring primarily impacts roles within the Development & Engineering (D&E) and IT & Data divisions at ASML. As part of the overhaul, the company identified over 3,000 of its 4,500 technology management positions as redundant in an effort to flatten its organisational structure and reduce management layers.

Under the agreement, employees whose jobs are not at risk may choose to leave voluntarily so that a colleague facing redundancy can remain with the company. Those who step aside under this arrangement will receive 80 percent of the severance package they would otherwise be entitled to.