ASML plans layoffs targeting management roles to simplify structure and boost efficiency.
Company to cut US job losses, pause hiring and add engineers.
Restructuring comes amid strong semiconductor demand driven by global artificial intelligence boom.
Europe's Chip Giant ASML Plans to Cut 1,700 Jobs; Which Roles Will Take the Hit?
ASML plans management layoffs and restructuring as it streamlines operations amid AI-driven chip demand
ASML facility as company plans restructuring and management layoffs amid industry growth
Summary
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ASML, Europe's most valuable company which plays a critical role in the global semiconductor industry, is planning to cut a wide range of management roles, reported Business Insider.
The layoffs are a part of a broader push to simplify its organisation and improve efficiency, according to internal documents seen by Business Insider, which reported the development on 21 April.
The move comes after ASML's January announcement regarding slashing of up to 1,700 jobs and restructuring its organisational chart to focus on engineering, after employees and customers complained about the company's highly inefficient, complex structure.
In additon, the chipmaking giant is planning to reduce the number of architects (senior technical roles) responsible for coordinating projects and assign them more clearly defined responsibilities within the firm.
Hirings to Stop
According to papers seen by Business Insider, ASML plans to stop hiring for six weeks in the summer and has cut the number of expected job cuts in the US from 300 to 185. The company has about 44,000 employees around the world.
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In a letter from February, CEO Christophe Fouquet said that employees were worried about the change, but that ASML wants to hire about 1,400 new engineers. He also said that more operational staff will be needed for the company to keep growing. A spokesperson said that the plans for reorganisation are not set in stone and that the effect on the US has already been lessened.
Roles to Be Eliminated
ASML has stated that several leadership and coordination roles will be eliminated as part of its new management structure.
These include department manager, group leader, team leader, project lead, chief product owner, product owner, scrum masters, main delivery owner, release train engineers, program manager and project cluster manager.
These changes also impact broader coordination positions within its chip industry operations, including key lynchpin roles that connect different parts of the semiconductor development and delivery process.
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Global Semiconductor Demand Surge
The restructuring comes at a time when the chip industry is experiencing a strong global upcycle due to demand for AI. Gartner says that semiconductor sales will reach more than $1.3trn by 2026, with AI chips making up a big part of that growth.
Reports from the industry say that hyperscalers are spending a lot more on AI infrastructure, which is forcing companies to make their operations more efficient while still spending a lot of money on cutting-edge technologies.