In January 2026, ASML, the global lithography giant, announced a restructuring plan alongside its record-breaking 2025 results (€32.7 billion in revenue and €9.6 billion in net profit): a proposed reduction of 1,700 employees, accounting for approximately 3.8% of its global workforce. Of these, 1,400 positions would be cut in the Netherlands and 300 in the United States, primarily targeting management roles in technology and IT departments.

This plan triggered strong employee opposition. On March 25, 2026, over 1,000 ASML employees staged a strike during their lunch break at the Eindhoven headquarters to protest the layoff decision. Peter Reniers, a representative of the Netherlands' largest union FNV, publicly questioned: "With a net profit of €9.6 billion in 2025 and plans to repurchase €12 billion in stock over the next three years, the company is fully capable of pursuing adjustments prudently."

Agreement Reached

Following eight rounds of arduous negotiations, ASML reached a social plan (Sociaal Plan) agreement on May 11, 2026, with the four major unions: FNV, CNV, De Unie, and VHP2. The core provisions include:

1. Job Security Period: Employees will not face forced layoffs before May 1, 2027, providing a clear employment security buffer during the restructuring process. The agreement is valid for two years, effective retroactively from June 1, 2026.

2. Internal Reassignment Mechanism: Employees already on the layoff list will be given priority to apply for other vacant positions within ASML before the no-layoff period ends. The company will create "landing spots" by not renewing temporary contracts, thereby facilitating internal transfers.

3. Severance Compensation Standard: Employees who ultimately must leave will receive one month's salary per year of service (the legal minimum is one-third of that amount). Employees over the age of 50 will receive additional compensation, with the maximum payout capped at €400,000.

Layoff Numbers Halved

The most significant reversal of this agreement lies in the substantial reduction of the layoff scale. Union estimates suggest that of the 1,400 positions originally slated for elimination in the Netherlands, approximately 100 can be resolved through internal transfers. Combined with reemployment arrangements under the agreement framework, the final number of forced layoffs is expected to drop to around 650—a reduction of more than 50% from the original plan.

In response, ASML stated: "The guiding principle of the agreement is to avoid forced layoffs as much as possible. We have previously indicated that we expect to be able to internally reassign several hundred employees."

Restructuring, Not Crisis-Driven

It is worth noting that these layoffs are not driven by financial distress, but rather represent ASML's first organizational restructuring in sixteen years. Engineer feedback indicates that up to 22% of their working time is consumed by administrative tasks. The company aims to eliminate 3,000 middle management positions, streamline reporting hierarchies, and allow engineers to refocus on innovation.

Ironically, ASML is planning significant expansion in the coming years—its second Eindhoven campus is expected to accommodate 20,000 new employees, nearly double the current Dutch workforce.

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